Netflix revenue on deck when investors weigh the evaluation and content of the content

Netflix (NFLX) will report the result in the second quarter on Thursday after the bell. The shares have risen by around 40% since the beginning of the year, with the stock rating a top debate on Wall Street, while the streamer doubles for live events and sports content.

According to Bloomberg Consenses estimates, Wall Street expects the second quarter.

Investors focus on key figures other than the number of subscribers that the company no longer reported because it focuses on promoting greater commitment and top line growth.

At the end of 2024, the company had 301.6 million global subscribers. Netflix said in his shareholder letter in the fourth quarter that it would disclose subscribers in the future “if we cross the most important milestones”.

Read more about Netflix's stock movements and today's market action.

The analysts of Wall Street are still divided by the evaluation of Netflix, whereby the shares are currently trading compared to the wider market and even some of the company's tech colleagues with a 40 -fold forward profit of the forward transactions.

In a note recently shown to the customers, JPmorgan urged caution and warned that a large part of the optimism around Netflix could already be evaluated. As a result, the company confirmed the neutral rating for the share and maintained a price target of USD 1,220 per share.

At the same time, others say that the evaluation is justified.

“I understand that the evaluation is a bit rich,” said Brian Mulberry, customer portfolio manager at Zack's investment management, to Yahoo Finance and noticed that Netflix was around twice as high as the evaluation of the S&P 500 (^GSPC). “But this is one of the few places where you actually project strong profit growth in the next two to three years.”

Mulberry pointed out that the estimates that Netflix's profits will show profits per share will probably grow an annual rate of around 21% in the next three years, which triples the pace of the wider market.

He highlighted the advertising as a critical growth driver and described it as the most important metric to observe according to general income and income. Netflix's turnover doubled this year to around $ 3 billion, compared to $ 1.4 billion in 2024.

In May, Netflix announced that the ad supported by AD has reached 94 million global monthly users, which has an increase of 70 million in November. The company also found a strong commitment of the US advertising animal members, which observe about 41 hours per month, which corresponds to the ad-free plan.