Netflix on the verge of Q3: A rise to success or a downfall?

Netflix (NASDAQ:NFLX) is set to report its third-quarter financial results on Thursday, October 17, and many investors are eager to see if the streaming giant beats expectations. Analysts are calling for earnings per share of $5.09 on revenue of $9.77 billion.

With the results approaching, Investing.com is conducting a survey to gauge market sentiment. In a preliminary analysis, Citi analysts are forecasting higher subscriber additions than most analysts expect. However, they note that the company itself has warned that third-quarter subscriber additions will be lower than last year’s 8.8 million. Forecasts range from 4.5 million to 4.6 million new subscriptions.

Citi analysts say investors will be watching Netflix’s three main areas of focus: ad subscription expansion, sports content strategy, and capital allocation. One of the key points is the growth of advertising contracts, which have increased by 150% compared to last year. With the first NFL broadcast on the platform planned for Christmas, questions about the company’s sports plans also remain in the spotlight.

In addition, the market is discussing possible changes to subscription prices in the US. Netflix may go down the path of raising prices, as competitors have already done. If the price does increase, especially in the US, this could have a positive impact on the company’s shares, although experts warn that increases may be more difficult to implement internationally.

Investors will be closely watching whether Netflix can maintain the growth that has continued throughout the last few reports, or whether it will face difficulties related to market saturation and increasing competition.

Thus, the outcome of the third quarter will show whether Netflix remains one of the leaders in the streaming market and continues to meet the expectations of analysts and investors.