Netflix's financial report is about to be released, and the market expects its financial performance to be strong. However, the advertising business and competitive pressure are also the focus of attention.

Financial report expectations

Netflix will release its first quarter financial report this week, with an expected profit of $4.51 per share, a year-on-year increase of 57%, and sales of $927 million, a year-on-year increase of 14%. This will be the third consecutive time that Netflix's sales growth has accelerated. Analysts predict that 4.88 million new subscribers will be added in the quarter, and the total number of subscribers worldwide will reach 260 million.

Stock market performance

Morgan Stanley analyst Benjamin Swinburne gave Netflix stock an "overweight" rating and raised the target price from $600 to $700. He predicts that Netflix's compound annual growth rate of earnings per share over the next five years will reach 25%.

Advantages of Original Content

Swinburne pointed out that Netflix has an underestimated competitive advantage in original programs, international content, and a rich film library. This quarter's popular original TV series include "Three body Problem", "The Last Airbender", and more.

Advertising Business and Competition

Although Netflix is promoting its advertising business and paid sharing plan, bringing positive momentum, the scale of its advertising supported services has not yet reached expectations. In addition, with the intensification of competition in the advertising business, analysts believe that the necessity of expanding scale is becoming increasingly urgent.

Market competition environment

In the field of streaming media, Netflix faces fierce competition from Amazon, Disney, Warner Bros., and others.