{"id":1559,"date":"2025-07-17T16:42:38","date_gmt":"2025-07-17T16:42:38","guid":{"rendered":"https:\/\/retrotradingreport.com\/index.php\/2025\/07\/17\/nflx-earnings-will-be-strong-but-netflix-stock-may-still-sink-heres-why\/"},"modified":"2025-07-17T16:42:38","modified_gmt":"2025-07-17T16:42:38","slug":"nflx-earnings-will-be-strong-but-netflix-stock-may-still-sink-heres-why","status":"publish","type":"post","link":"https:\/\/retrotradingreport.com\/index.php\/2025\/07\/17\/nflx-earnings-will-be-strong-but-netflix-stock-may-still-sink-heres-why\/","title":{"rendered":"NFLX earnings will be strong, but Netflix stock may still sink: here\u2019s why"},"content":{"rendered":"
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Netflix Inc (NASDAQ: NFLX) is inching up this morning ahead of its Q2 earnings scheduled for after the bell.<\/p>\n

Expectations for the streaming giant\u2019s second-quarter are sky-high, with the consensus calling for earnings to grow by an whopping 45% on a year-over-year basis.<\/p>\n

More importantly, several experts, including Paul Meeks \u2013 the manager partner of Water Tower Research believes NFLX will not only meet but potentially exceed those estimates.<\/p>\n

However, despite that confidence, Meeks urges caution. Netflix stock is already up 45%<\/a> versus its April low \u2013 nearly double the S&P 500\u2019s gain over the past three months.<\/p>\n

\u201cA lot of goodies [are] baked into this price,\u201d he warned \u2013 and even a strong earnings report may not be enough to justify further any upside in the near term.<\/p>\n

What investors must focus on in Netflix\u2019s Q2 release<\/h2>\n

Paul Meeks expects Netflix to handily beat Street estimates for profit and revenue in its fiscal Q2. What\u2019s he watching more closely, therefore, are other metrics that could signal long-term traction.<\/p>\n

One key area: live events. \u201cI\u2019ll be looking for the viewership of the July 11th Taylor-Serrano fight,\u201d he told CNBC<\/em> in an interview<\/a> today, adding continued traction following the company\u2019s price hike in January should remain in focus as well.<\/p>\n

Meeks also pegged the Netflix ad-supported tier as a \u201cbig deal\u201d, saying momentum there should further offer insights into what the future holds for NFLX shares.<\/p>\n

All in all, with Netflix Inc no longer reporting quarterly net subscription adds, investors must rely on alternative indicators like engagement with live content, pricing power, and ad-tier adoption to gauge strength.<\/p>\n

What will drive future growth for Netflix stock?<\/h2>\n

Meeks believes the streaming company\u2019s future growth will hinge on its ability to dominate live events and unscripted content.<\/p>\n

\n

One of its key legs to growth is going to be live events, including sporting events, and unscripted shows and celebrity interviews.<\/p>\n<\/blockquote>\n

Over time, the market veteran expects NFLX to do very well in live events and, therefore, watches the management\u2019s updates surrounding such events very closely.<\/p>\n

Note that Netflix shares retain their consensus \u201coverweight\u201d rating among Wall Street analysts at the time of writing.<\/p>\n

How to play NFLX shares after Q2 earnings?<\/h2>\n

While Netflix Inc could sink a little after Q2 earnings due to sky-high expectations and valuation concerns<\/a>, Meeks said a potential pullback will actually be a buying opportunity for longer-term investors.<\/p>\n

In fact, the Water Tower expert sees NFLX stock as a better pick than any other streaming name, primarily because of its content flywheel.<\/p>\n

\n

They have content so much more than everybody else that they get subscribers, and they have so many more subscribers than everybody else that they can create more content and keep flywheel going \u2013 not just in the US but abroad.<\/p>\n<\/blockquote>\n

This virtuous cycle, according to Meeks, gives Netflix a structural advantage over competitors like Disney and Warner Bros.<\/p>\n

The post NFLX earnings will be strong, but Netflix stock may still sink: here’s why<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Netflix Inc (NASDAQ: NFLX) is inching up this morning ahead of its Q2 earnings scheduled for after the bell.Expectations for the streaming giant\u2019s second-quarter are sky-high, with the consensus calling for earnings to grow by an whopping 45% on a year-over-year basis.More importantly, several experts, including Paul Meeks \u2013 the manager partner of Water Tower…<\/p>\n","protected":false},"author":1,"featured_media":1560,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1559","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1559","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/comments?post=1559"}],"version-history":[{"count":0,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1559\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media\/1560"}],"wp:attachment":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media?parent=1559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/categories?post=1559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/tags?post=1559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}