Here's How Much Traders Expect Netflix Stock to Move After Earnings Tuesday

Here's How Much Traders Expect Netflix Stock to Move After Earnings Tuesday

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Key Points:

  • Netflix is set to report its fourth-quarter earnings after market close on Tuesday, with traders anticipating a potential stock movement of up to 7% in either direction based on options pricing.
  • The stock has declined nearly 30% since October's earnings miss, which was driven by a surprise tax expense, and has also been pressured by concerns over its pending Warner Bros. Discovery acquisition facing regulatory and competitive challenges.
  • Analysts expect Netflix to report a 17% revenue increase to $11.97 billion and a 30% rise in earnings per share to $0.55, reflecting strong execution in strategic areas like user engagement, live sports, gaming, and advertising.
  • Despite uncertainties around the Warner Bros. deal, most Wall Street analysts remain bullish