Netflix Earnings: What to Watch

The big banks kicked off earnings season recently, and the FAANG stocks' reports are on deck over the next few weeks. As always among this group of popular stocks, Netflix (NASDAQ: NFLX) will go first. The streaming video giant is set to report its second-quarter results after market close on Tuesday.

That quarterly update will be watched closely by investors. Netflix is expected to report a sequential decline in paid subscribers, but management is also expected to provide more details about the upcoming launch of its ad-supported tier. Further, investors will be looking for signs that it can reaccelerate its revenue growth and get back to growing its subscriber count.

After total paid subscribers declined slightly in Q1 and management forecast that it would end Q2 with 2 million fewer subscribers than it had three months prior, investors had good reason to be concerned. Management also recently pointed out a few key headwinds for the business, including account sharing across households, intensifying competition, and high household penetration.

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Source Fool.com