The streaming giant Netflix (NFLX) is set to release its second-quarter 2024 earnings on July 18. Analysts are expecting earnings per share to come in at $4.74 versus $3.29 per share reported in the prior-year period. Meanwhile, analysts expect revenues of $9.53 billion, reflecting a 17% year-over-year increase, according to TipRanks’ data.
Interestingly, Netflix has an encouraging earnings surprise history. The company exceeded earnings estimates in eight out of the previous 10 quarters.
Website Traffic Shows Growth
TipRanks’ website traffic screener reveals that NFLX’s traffic increased sequentially and year-over-year in Q2. According to the tool, the number of visits to netflix.com increased by 27.16% sequentially in Q2. Moreover, website traffic jumped 103% year over year.
Also, TipRanks’ Bulls Say, Bears Say tool highlights that Netflix’s solid content and launch of the ad-supported tier should continue to drive its subscriber base and engagement on its platform.
Insights from Options Trading Activity
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting an 8.41% move in either direction.
Is Netflix a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 19 Buys and eight Holds assigned in the past three months, as indicated by the graphic below. After a 45% gain in its share price over the past year, the average NFLX price target of $689.58 per share implies about 5% upside potential.
