Netflix, Inc. Add to portfolio

The company has long been the largest and most important streaming service around. But it hasn't grown to boast a user base far larger than those of runners-up like Hulu and Amazon's Prime Video on its own -- it had help from content partners. These developments could challenge Netflix's hold on quality licensed content, because content creators like NBCUniversal are likely to want their biggest hits on their own streaming platforms -- which is how we find ourselves here today, learning that Netflix is losing The Office. The increasingly tribal nature of streaming services means that, for the most part, you can expect Disney shows and movies to turn up on Disney+ (and Hulu), WarnerMedia properties to stream on WarnerMedia's upcoming streaming service, and so on. So when Comcast announced that its streaming service would be coming out within a couple of years, Netflix ought to have known that The Office was on the clock. But sorting out all of these properties into their most efficient homes will take time. Some may be on long-term contracts. I've written about Netflix's tricky situation before: how Netflix's original content (once a great bonus on a platform full of licensed hits) may have to bear a much bigger burden as licensed content departs -- and how Netflix might try to revive shows its new rivals have abandoned in order to acquire "original" content that has fans outside of Netflix. But this story -- the departure of The Office -- is the big one.

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SAN FRANCISCO, July 16 (Reuters) - A wave of quarterly reports from Netflix and other top-tier, high-growth companies starting on Wednesday will test Wall Street's willingness to extend a recent really driven by expectations of lower interest rates. Facebook, Amazon and Google-owner Alphabet , all part of the so-called FANG group of widely held stocks, have jumped over 5% so far in July, with investors increasingly willing to bet on the volatile names thanks to expectations the Federal Reserve will cut rates later this month by as much as half a percentage point to support economic growth. The FANG companies, combined with investor favorites Apple and Microsoft, account for about 17% of the S&P 500's $26 trillion market capitalization, making reaction to their quarterly results key to Wall Street sentiment. The reports by Netflix, scheduled for after the bell on Wednesday, followed by Microsoft on Thursday, and Facebook, Amazon and Alphabet next week could fuel gains on Wall Street, or put an end to the market's recent strength.

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After a tough 2019 for shares of Netflix, which saw a meager 4% gain over the last six months versus the S&P 500's 15% move, the streaming giant is now poised for a major boost, according to two market watchers. "It's been in this sideways range for almost seven months now. And whenever any stock gets stuck in a range for a while, once it finally breaks out of that range, it usually sees a powerful move," he said Tuesday on CNBC's "Trading Nation." A move above the top end of the range, the $385 level, would be "quite bullish," Maley said. But if Netflix's second-quarter results don't meet expectations, the stock could break down below $340, coincidentally the same level as Netflix's 200-day moving average, he said. Mark Tepper, president and CEO of Strategic Wealth Partners, said his firm still owned Netflix for its strong position in the streaming space.

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Netflix Earnings Will Show Whether Price Hikes Are Paying Off. (Bloomberg) -- Netflix Inc.’s earnings should help answer a key question for the streaming giant: whether customers are willing to pay more in an increasingly competitive market. “Recent price increases in multiple countries should result in revenue acceleration starting this quarter,” Citigroup Inc. analyst Mark May said in a research note. On the plus side, the Los Gatos, California-based company will get a boost from new seasons of “Stranger Things” and “Orange Is the New Black.” Earlier this month, “Stranger Things” got off to a record start, with 40 million household accounts watching in the first four days of the new season. But Disney’s highly anticipated $6.99-a-month streaming service, called Disney+, arrives in November.

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When Netflix Inc. reveals its subscriber additions Wednesday afternoon, it should pass a milestone: 150 million paying subscribers.

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Streaming service provider Netflix, Inc. (NASDAQ: NFLX) potentially faces several challenges in holding onto its market share as it prepares to release Q2 earnings after the closing bell Wednesday. NFLX shares are up about 40% since the start of the year even as companies like Apple Inc (NASDAQ: AAPL) announced plans to ratchet up their streaming game. Still, the road ahead for NFLX appears to have a few bumps. For one, some of its contracts to exclusively stream popular sitcom content will expire soon, and others have already snapped up those licensing agreements. For another, both the rise of other streaming services and other electronic media like gaming are putting pressure on NFLX’s market share of viewers. The company’s guidance for Q2, with it expecting $0.56 per share, was well below Street expectations of $0.99 per share. So far, NFLX has gotten away with not releasing ratings, but we’ll see whether that can continue. For Q2, the third-party consensus earnings is still $0.56 per share, compared with $0.85 a year ago.

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Streaming video veteran Netflix(NASDAQ: NFLX) will report earnings this Wednesday, and digital radio giant Sirius XM(NASDAQ: SIRI) will do the same two weeks later. The road ahead looks bumpy, and the emerging plethora of new streaming video competitors will certainly keep Netflix on its toes. But I don't expect the company to make any drastic changes to its business model anytime soon, because the current trajectory makes sense. It's fair to say that Netflix went all-in on original content production at the right time, preparing the company for exactly this kind of sea change. Therefore, Netflix may have grown my original investment by 5,700% over the last decade, but I still think it's one of the finest opportunities for further gains from here. Still, hiccups in the Pandora integration could make me walk away from Sirius much faster than I would abandon Netflix for some short-term misstep. So you could call Sirius XM a hold in traditional analyst terms. But Netflix shares have fallen 11% over the last 52 weeks while the long-term growth story stayed intact.

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Why Wall Street is still bullish on Netflix heading into its earnings. Despite what Credit Suisse noted is a downward trend in app downloads, analysts are still relatively constructive on the company’s prospects. When it reports second quarter earnings on Wednesday, Wall Street expects the company to post a profit of 77 cents on $4.93 billion in revenue, according to a consensus forecast by Bloomberg. Yet the company’s subscriber growth will be the major focus. In the first half of the year, Netflix’s hiked subscription prices may have been a drag on new additions. Yet both Bank of America and Credit Suisse hold a $450 price target on the stock, and rate it as a Buy. Competition heats up. Even as streaming competitors mount, Netflix is riding high on the enduring popularity of its content, as well as high expectations for its slate of future shows. However, even some analysts see reasons for worry.

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SAN FRANCISCO (Reuters) - A wave of quarterly reports from Netflix and other top-tier, high-growth companies starting on Wednesday will test Wall Street's willingness to extend a recent rally driven by expectations of lower interest rates. Facebook, Amazon and Google-owner Alphabet, all part of the so-called FANG group of widely held stocks, have jumped over 5% so far in July, with investors increasingly willing to bet on the volatile names thanks to expectations the Federal Reserve will cut rates later this month by as much as half a percentage point to support economic growth. The FANG companies, combined with investor favourites Apple and Microsoft, account for about 17% of the S&P 500's $26 trillion market capitalisation, making reaction to their quarterly results key to Wall Street sentiment. The reports by Netflix, scheduled for after the bell on Wednesday, followed by Microsoft on Thursday, and Facebook, Amazon and Alphabet next week could fuel gains on Wall Street, or put an end to the market's recent strength.

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Scheduled to report its second-quarter results after market close on Wednesday, Netflix(NASDAQ: NFLX) has a high bar to live up to. Combining this recent strong quarter with robust guidance from management for Q2, there's good reason for investors to expect solid execution from Netflix during the period. As usual, one key metric to watch in the streaming-TV company's quarterly update will be its growth in members during the quarter. As the lifeblood of Netflix's business model, it's important for this number to keep rising. But how many member additions should investors expect from Netflix in Q2? The company also saved some of its popular releases, namely the third season of Stranger Things, for the beginning of its third quarter. So, Q2 lacked the big titles that help drive outsize member growth. Revenue growth could steal the show. Even though Netflix's guidance for a 24% increase in paid memberships during its second quarter signals a deceleration in member growth compared to the 25% growth seen in Q1, management expects revenue growth to accelerate significantly.

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