Netflix Preview: "A Crowded Long And Defensive Save Haven For Tech Investors"

Netflix is reporting earnings after market close, with the investor focus shifting from subscriber numbers to the sustainability of revenue growth and margin expansion. Wall Street anticipates Q1 EPS of $5.763 and revenue of $10.496 billion. UBS estimates revenue growth of 12% y/y, and reiterates FY25 operating margin and revenue guidance. Investors are keen on updates regarding pricing changes, the ad business performance, and the transition to an in-house ad platform. Also of interest are updates on live content, sports strategy, gaming, and content spending plans. Goldman Sachs anticipates debates on competitive moats, monetization, ad-tier scaling, and live entertainment investments. Goldman has slightly lowered forward net add trajectory and advertising revenue assumptions for Netflix. Goldman remains neutral on the shares with a lowered 12-month price target to $955 due to balanced risk/reward. The general sentiment is that the bar for Netflix is set relatively low, but the stock remains a crowded long.