Weekly Wins: How to read an earnings report?
The earnings season is picking up speed while $Netflix (NFLX.US)$ , the video streaming giant, is set to report its fourth-quarter earnings after the market close on Thursday.
As one of FAANG companies, Netflix will be a blockbuster of this week. Netflix has been on a downward trajectory since November, down nearly 25% from its all-time high.
Spurred by a surge in demand to watch videos at home during the pandemic, Netflix is the market darling of 2020, gaining 67% and $S&P 500 Index (.SPX.US)$ up 16.26% over the same period.
How is Netflix doing in the post-pandemic era?
Does NFLX have a bigger business picture plan, like the progress of its video game ambitions?
What else can we expect from the earnings call?
Is Netflix still a good investment option?
Investors can find some information from the earnings results and the conference call.
How to be well-equipped to dissect Netflix's fresh financial results?
Here are key things to focus on this coming earnings report: revenue, EPS, subscriber growth, financial position.
Here are key things to focus on this coming earnings report: revenue, EPS, subscriber growth, financial position.
They will be reported in three financial statements: Balance Sheet/ Income Statement/ Cash Flow Statement.
Why it matters?
The first thing to do when analyzing a company's earnings report is to examine revenue, earnings per share (EPS)/net income.
Have they grown or decreased from the same period a year ago? Did they meet the expectations of analysts and company guidance? $Netflix (NFLX.US)$'s Q32021 revenue rose 16.3% year over year (YOY), its slowest pace in at least the past 15 quarters.
For platform companies, user base is a core valuation metric, especially for Netflix, whose revenue is largely dependent on subscription revenue.
As a content-driven company, the endless cash burn is a common cliché when criticizing NFLX's growth model. Could $Netflix (NFLX.US)$ prove it to be a sustaninable cash-generating company with postive cash flows?
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Moomoo Learn OP : Q: Is $Netflix (NFLX.US)$ a good investment? Share your insights with mooers.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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102108463 : When will it go up?
Ansi Sai : This earnings will be tricky and possible to stay out.
positive -> increased sibscription prices in US , so more revenue. Also fallen down deeply from last month, might reveral soon.
Not a financial advice, just an idea
determined Birdie : run up to the earnings then be the first to bail.
cosmiclatte89 : $Netflix (NFLX.US)$ is in a tough industry with $Disney (DIS.US)$ , $Dish Network (DISH.US)$ and all those streaming services... in the past 3yrs it only managed to beat expectation 2 times which was in 2021 amidst the pandemic. Recently it had risen its price which didn't deter the subscribers as most of them are still under the shadow of covid. To combat against the recovery play, $Netflix (NFLX.US)$ is getting into video games for growth. It is a tough market to be in and unless it can remain within the range of 478- 563, i kinda need more convincing factors to stay invested.... okok having said that, i do enjoy $Netflix (NFLX.US)$ as long as i can work from home hehehe...
Milk The Cow : It current show positive earning, so I considered it a ok company.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
However, I think they may have some competitors which is affecting their business.
Most likely best to avoid for the time being (observe first).
KintyMcMinty : Mid term challenge will be content as many IP owners, studios, publishers are moving away to their own (or competitor) services
Jayaram : Netflix stock price like rocket
steady Pom pipi : It was less than expected and fell sharply before the day. Now is the opportunity to buy, buy low and sell high![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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Moomoo Learn OP Milk The Cow : In the business world, the rearview mirror is always clearer than the windshield.——Warren Buffet
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