Netflix Prepares to Unveil Fiscal Q4 Results with High Expectations

Earnings Release:

* Date: Tuesday, January 17th, after market close

Analysts' Estimates (Bloomberg Consensus):

* Revenue: $10.11 billion (vs. $8.83 billion in Q4 2023)
* Earnings per Share: $4.18 (vs. $2.11 in Q4 2023)
* Net Subscriber Additions: 9.18 million (vs. 13.12 million in Q4 2023)

Market Background:

* Netflix stock has declined since the start of 2023, but remains significantly higher year-over-year.
* Macroeconomic uncertainties have weighed on tech stocks.

Content and Execution:

* Netflix has enjoyed a strong slate of content, including popular NFL games, the "Jake Paul vs. Mike Tyson" boxing match, and the return of "Squid Game."
* The Jake Paul and Mike Tyson match attracted over 108 million global viewers, becoming the most-streamed sporting event of all time.
* Netflix's sports programming, including WWE Raw, is expected to drive growth and subscriber retention.

Subscriber Losses:

* Netflix will cease reporting net subscriber figures after this earnings release.

Price Hikes:

* Netflix has raised prices several times in recent years.
* Analysts expect further price increases to boost revenue growth, which is forecasted to slow in 2025.
* Netflix phased out its lowest-priced ad-free plan, making the Standard plan its cheapest ad-free offering.

Valuation:

* Analysts may revise Netflix's revenue outlook downward due to currency headwinds.
* Price increases could offset any downward revisions in revenue projections.