Netflix ($NFLX) is set to release its third-quarter earnings on 19th October. The entertainment company is expected to hit a record high on the stock prices after releasing the earnings. The company’s stocks have already surged 17% this year and hit a record high of $646.84 on 7th October.
A big reason for this high surge in the value of Netflix stocks is the increase in consumption and global paid streaming subscribers. The entertainment platform offers many genres, and the variety of languages is also great.
In this quarter, the company also saw a record number of viewers for the K-drama Squid Games. As per the sources, it was valued at around $900 million and is also the most-watched OTT after ‘You’!
Analysts Estimates
The analysts expect this California-based global internet entertainment service company to release its earnings per share at $2.55. This will represent y-o-y growth of over 45% from $1.74 per share in the third quarter a year ago.
Netflix ($NFLX) is estimated to post revenue growth of over 16% to around $7.5 billion. In the previous two years, Netflix has beaten the earnings per share (EPS) estimates thrice with a surprise of nearly 21%.
One of the big reasons for this enormous growth of the entertainment platform is the increase in its OTT shows in the Pandemic year. Additionally, people worldwide have started embracing dramas and shows even if they are in a language different from their own! For instance, Korean dramas have achieved greater recognition worldwide after ‘Parasite’, and Netflix has successfully used this by producing many dramas and reality shows.
Video streaming has become more competitive, and other platforms like Amazon, Disney, and others are also not leaving any stones unturned. For this, Netflix ($NFLX) is also venturing into other fields of the entertainment industry.
