Netflix reports earnings on Tuesday after the market close and this is porbably the most important earnings release EVER in the company's 22 year history.
Investors are wondering just how much the release of Disney+ and Apple TV+ has affected subscriber numbers. The good news is analysts expect a nice increase in revenue and subscribers but will Netflix stock rally higher or fall much lower?
Analysts are predicting 53 cents a share up from 30 cents during q4 2018. So what exactly will cause the stock to fall or rise? We should pay attention to a few key metrics:
- International Subscriber Growth
- The growth prospects for India
Much of Netflix's growth will come from international subscribers due to Netflix's saturation in North America. Ever since the company showed their subscriber numbers by region, investors will be able to get a transparent view of the company strength.
Another key metric is EPS, which should rise nicely in 2019 overall. As much as people are worried about increased competition, a positive EPS number should put investors at ease.
Lastly, I'm keen to hear more about Netflix's cheaper mobile plans that launced late 2019 in India. Mobile streaming is a big market opportunity for Netflix as consumers watch TV and movies on much smaller devices.
Stay tuned fore more information on Netflix stock after the earnings release. If the numbers are strong, Netflix stock could approach resistance at $380 per share.
One way to play a positive earnings report is by purchasing call options. I use Robinhood to buy and sell call options for free.
Tarik Pierce is the founder of InvestorTrip.com and regularly contributes articles to this website.
While living overseas, he uses PureVPN for a low cost VPN service.
He recommends Bluehost for setting up your own personal and/or business blog.
While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.