Netflix Subscriber Growth Faces Test After $43 Billion Rally
- ‘Expectations are sky-high’ heading into earnings on Monday
- Analysts estimate total U.S. subscribers rose by 1.21 million
This article is for subscribers only.
Netflix Inc. will get a chance next week to validate the more than $40 billion added to its market value since the company’s blowout earnings report in April.
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 1 million more subscribers than analysts projected. But analysts have made that task more difficult in recent months by raising subscriber estimates, even as some question the stock’s valuation.