Netflix was set to report its profits in the first quarter on Thursday, but there is a great development. The subscription numbers, which was a central scale in Wall Street used to measure the validity of her business.
Why change? Netflix said she wants to convert the conversation into other standards such as the user’s sharing and revenues, which claims to be more successful with her maturity.
After the fourth quarter of the association-when it had the largest distance than the new subscribers, with the help of live sporting events-many analysts expect that Netflix has the first quarter more modest based on a more soft content collection.
Therefore, in the absence of subscriber numbers, what will Wall Street look?
“Frankly, I think we all go to this with the eyes of the eyes, we don’t know what they will reveal,” Laurent Yun, an analyst at Burnstein, told Business Insider. “But at the end of the day, it comes to the validity of their financial data and the margin expansion path for the last many quarters.”
Here are some other topics that Wall Street will focus on.
Her ads: Analysts will listen to any details about the Netflix ads display, which depends on it to show significant growth in the coming years. Netflix said she expects to double her advertising revenues this year after its advertising obligations increased by 150 % during the television season last year, and analysts keep it.
“The most important thing is to know if they are growing revenues because of the advertisement,” said Michael Pachter, a playbush secretities Michael Pachter analyst. “I know they are, but I want some colors.
Yun also said he will closely listen to Intel on the health of the advertising market.
Economic uncertainty: The big question that hangs on the Wall Street bullish position on Netflix is how the definitions of affecting the prosperous ads can affect.
Netflix decreased significantly its advertising rates after Amazon flooded the market by offering ads to Prime Video last year. The company may face pressure to reduce prices to maintain the spending of advertisers amid a commercial war. Morgan Stanley has slightly reduced her expectations for Netflix in the April 8 note, while remaining an upperness in the company.
Analysts will also search for participants in Ted Sarandos and Greg Pitser to discuss how economic tensions can reduce the attention of the new user.
Netflix managed to raise prices in line with the popularity of entertainment, but analysts are wondering whether the macroeconomic environment may hurt its ability to raise prices around the world.
Technology Declaration: Netflix has built its own internal technology to facilitate the purchase of ads and the new sports programming that is popular with advertisers. ADTECH at home can be complicated, analysts will search for details about Netflix’s progress as he asked himself from Microsoft Xandr to sell ads using partners such as the Trade Office and Google DV360. One of the questions is whether Netflix has attracted any new advertisers in this way, as Raymond James analysts wrote in a recent note.
The relevant question is the remaining room to grow in the advertising layer. Since its launch in 2022, it rapidly increased by offering a lesser price option as the price raised the versions free of ads and breaking the password sharing. By November, the company said it has reached 70 million global users. In January, he said that the advertising plan constitutes more than 55 % of new subscriptions in the countries where they are available.
Creative and sports content: Analysts want to hear more about Netflix plans for sports programming, with the attraction of its associated advertising. They are also interested in what executives should say about building a content strategy that is driven by creators, as youtube is increasingly dominating TV scenes.
“This increases the opportunity and necessity about the success of the advertising liquefaction in Netflix, where YouTube has already built a great work in subscription revenues,” said Morgan Stanley analysts. “It also increases our interest in pressing Netflix to the content led by the Creators over time while taking advantage of the tools of artificial intelligence to push the liquidation, customization and efficiency of production.”
Paid post: Inquiries, do you want to know: When will the Netflix password stop carrying fruit? “Although the participation feature paid in 2025, the company still sees an increase of users who support ads who join the service, and we see the ability to improve the CPMS AD with the start of increased supply in the slowdown,” said Raymond James analysts.
