Netflix Faces July 16 Earnings Test as Stock Sits 42% Below 2025 Peak
Updated
Updated · The Motley Fool · Jul 10
Netflix Faces July 16 Earnings Test as Stock Sits 42% Below 2025 Peak
3 articles · Updated · The Motley Fool · Jul 10
Summary
July 16 marks Netflix's next key catalyst, with second-quarter results due after the close after the stock fell 42% from its July 2025 peak.
Q1 results still showed operating momentum: revenue rose 16% to $12.25 billion and EPS jumped 86% to $1.23, helped partly by a $2.8 billion Warner Bros. termination fee.
Management kept its full-year revenue growth outlook near 13% and said advertising revenue is projected to double from $1.5 billion to $3 billion, even as content spending is front-loaded into the first half.
Investor sentiment has been clouded by failed or denied deal speculation around Warner Bros. Discovery assets, Roku and Lionsgate, plus Reed Hastings' board exit, though co-CEOs Ted Sarandos and Greg Peters remain in place.
At about 24 times earnings—only the third such reading in 15 years—the report argues valuation has turned unusually cheap ahead of the earnings release.