Net subscribers will be eyed.

Netflix will release their earnings after the close. Recall last quarter (released on April 20), the net subscriber numbers disappointed. The estimate for the first quarter was for paid subscribers to rise by 6.29 million. They actually came in at 3.98 million.  The company guided new subscriber growth for the second quarter to come in at 1 million. That was well below the 4.44 million expected

This quarter the expectations are much more modest near the 1M guidance.  Expectations are for 1.12 million versus 10.09 million in Q2 2020 when the pandemic surge occurred.

Other estimates show:

  • revenues $7.32 billion versus $6.14 billion in a Q2 2020
  • earnings-per-share $3.14 expected versus $1.59 in Q2 2020

The guidance for Q3 

  • earnings-per-share $2.18
  • revenues $7.48 billion
  • guidance is for a 5.5 million gain in the 3Q

Looking at the daily chart below, the price range since the earnings has range between  $475.72 and $565.39. The high was reached just last week. The current price trades at around $534.  The price is above the 50, 100 and 200 day MAs between $508.96 and $516.43.  A move back below those levels would tilt the bias more to the downside.  However, looking at the chart, the price action has been largely sideways sing July of 2020.  

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