Trading Netflix After Q2 Fiscal 2024 Performance

As one of the largest video-streaming companies in the world, Netflix provides valuable insights into consumer trends within the streaming sector. However, with many more streaming competitors in the industry, investors pay a lot of attention to Netflix's subscriber numbers and growth.  

Learn more about Netflix's fiscal second-quarter 2024 performance and what analysts forecast for the stock below. 

• The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.

Netflix Fiscal Q2 2024 Performance

Here are some of the key highlights from the fiscal second-quarter 2024 earnings report from Netflix: 

• Earnings per share of $4.88 vs $4.74 expected 
• Third-quarter earnings per share forecast of $5.10 vs $4.74 expected 
• Revenue of $9.56 billion, up 16.8% from the same period last year and better than the $9.53 billion expected 
• Third-quarter revenue forecast of $9.73 billion, lower than the $9.83 billion expected 
• Full-year 2024 revenue growth projection of 14% - 15%, up from the prior year's 13% - 15% 
• 8.05 million new subscribers, beating expectations of 4.7 million 
• Ad tier subscription now has 40 million global monthly active users, up from the 15 million revealed in November last year 

On the face of it, Netflix beat analyst expectations on most metrics apart from its third-quarter revenue forecast. The growth in revenue and earnings per share has been attributed to its initiatives like password sharing crackdown and ad-supported subscription tears, on top of its subscription price hikes from last year.  

The addition of 8.05 million new subscribers has also been attributed to the release of more leading content such as Bridgerton and Baby Reindeer. The management team stated it has won the streaming rights for two NFL games due to air on Christmas day which may attract more advertisers to the platform.  

Netflix announced plans to phase out its basic ad-tier membership. On top of raised prices for its ad-free subscriptions, the streaming giant is trying to lure more viewers to its ad-supported offering. It is part of a strategy to boost its advertising business which it says will help lower subscription prices overall and provide an additional source of revenue for the company.  

However, Netflix also announced it will stop reporting subscriber figures, profitability metrics and average revenue per member numbers. This has raised concerns that the company may not be as bullish on the growth of its long-term subscriber numbers. On the earnings announcement, the stock fell nearly 6%. Investors may well be paring back on the holdings in the stock's price to adjust to the already forecasted lower third-quarter revenue figures and the potential for lower subscriber numbers.

Netflix Stock Forecast - What do the Analysts Say?

According to analysts polled by TipRanks for an Netflix stock forecast in the past 3 months, there are currently 23 buy, 12 hold and 1 sell ratings on the stock. The highest price level for a Netflix stock forecast is $800.00 with the lowest price target at $450.00. 

The average price target for a Netflix stock forecast is $673.89.

An Example Trading Idea for the Netflix Stock Price

An example trading idea for the Netflix share price could be as follows:  

• Buy the stock on a break above $681.00 to allow for volatility. 
• Target just below the highest analyst price target of $800.00. 
• Keep your risk small at a maximum of 5% of your total account.   
• Time Line = 1 – 6 months  
• If you buy 10 Netflix shares:  
  • If target is reached = $1,190.00 potential profit [($800.00 - $681.00) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially as the company is already forecasting lower third-quarter revenue.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Netflix stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

However, there is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall.

How to Buy Netflix Stock in 4 Steps  

With Admirals, you can buy shares with a commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

1. Open an account with Admirals to access the dashboard.   
2. Click on Trade on one of your live or demo accounts to open the web platform.   
3. Search for your stock in the search window at the top right to view the live price chart. 
4. Click Create New Order from the bottom of the screen to open the trading ticket. 

Click on the banner below to trade Netflix stock today ▼▼▼ 

Do You See the Netflix Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.

If you believe there is a higher chance Netflix share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.

This means you can trade long and short to potentially profit from rising and falling stock prices.

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