€154bn Netflix to justify valuation as earnings loom

By Jeran Wittenstein and Kamaron Leach

Netflix will get a chance next week to validate the $46bn (€39.4bn) added to its market value since the company’s blowout earnings report three months ago.

Netflix's Stranger Things

The main question hanging over Netflix’s second-quarter results — much like the first — is whether the company can add enough streaming subscribers to satisfy investors, whose bullish bets have made the stock the second-best performer in the S&P 500 Index this year.

Netflix silenced critics in the first quarter, adding almost 1m more subscribers than analysts projected. It is now valued at $179.75bn (€154bn).

“It’s possible expectations have gotten ahead of themselves,” Macquarie analyst Tim Nollen said in a research note ahead of the results. 

Mr Nollen said he’s not going against Netflix, even though “expectations are sky-high” heading into Monday’s report.

Growth is critical for the television- and movie-streaming company, whose success in adding subscribers has fuelled a surge in market value that now exceeds Walt Disney by almost $19bn. 

So far Netflix has proven it can keep finding new customers who are willing to pay to watch original shows like Stranger Things and 13 Reasons Why.

Wall Street is looking for second-quarter total subscriber net additions of 1.22m in the US and 5.08m internationally. 

All of this growth has come at great expense. It said last quarter that it plans to spend as much as $8bn on content in 2018.

Bloomberg


Related Articles

Netflix to make animated feature film based on the life of Wyclef Jean

22 July: A story of violence and healing

Netflix reels in $165bn with stock surge

Netflix adds seven million subscribers over summer

More in this Section

Jo'Burger restaurants go into liquidation

Kerry Group buys US ‘clean label’ firms for €325m

Irish mortgage rates end the year as most elevated in Europe

Westport emerges as 'Botox capital of the world' as plant sells $4bn of Botox to the world in two years


Lifestyle

On the red carpet: Margot Robbie, Saoirse Ronan, Diane Kruger and Cheryl

Raise a glass to Christmas festivities

The best festive desserts to try out this Christmas

Louise O'Neill: It’s important that we’re aware of the historical context of the backlash against feminism

More From The Irish Examiner