Exploring the ‘Streaming Content’ theme, we delve into the dynamic world of streaming and analyze two prominent stocks within this sector.
Netflix Earnings Preview
As we approach Netflix’s earnings report, all eyes are on the streaming giant, a current Zacks Rank #2 (Buy). The upcoming release promises to be one of the most significant quarterly updates in recent times.
The focus, as usual, will be on subscriber metrics; however, a notable change is on the horizon as Netflix plans to discontinue quarterly membership number reporting starting in 2025. Despite this, market expectations point to 4.7 million new subscribers, a decrease from the previous year.
Netflix has repeatedly surpassed subscriber addition estimates in recent quarters, indicating a positive trend for the company.
Anticipated growth in earnings per share and sales is substantial for this quarter, with supportive factors such as ad-supported membership tiers and profitability enhancements. The company’s margins have notably improved, leading to higher profits and increased investor confidence.
Roku’s Continued Success
Roku, also a Zacks Rank #2 (Buy), boasts its position as the leading TV streaming platform provider in the United States. With a strong user base and partnerships with renowned TV brands, Roku has solidified its market presence.
Market analysts have been bullish on Roku’s financial outlook, with positive revisions reflecting optimism. The company’s latest quarterly results demonstrated robust growth in streaming households and streaming hours, further solidifying its market leadership.
Forecasts for Roku’s current fiscal year indicate a healthy growth trajectory, supported by a solid revenue stream and a promising Style Score of ‘A’ for Growth.
Investors are advised to consider these two stocks – Netflix (NFLX) and Roku (ROKU) – for their streaming exposure investment portfolio.