Eva Mathews, Nivedita Balu

(Reuters] – Netflix Inc. (NASDAQ:) expects to announce its slowest quarter-to-quarter revenue growth in almost eight years Tuesday. But, all eyes will be on Netflix’s forecast for the new series of “Stranger Things,” and “Ozark” on Monday.

In an attempt to increase its subscriber base in post-pandemic times, the company will spend billions on original TV and film productions, and mobile games to compete with Amazon.com Inc (NASDAQ) and Walt Disney Company. Disney (NYSE:).

According to analysts, Netflix’s exit from Russia could result in the loss of about one million subscribers.

According to Refinitiv data, analysts expect Netflix to grow to 2.6 Million subscribers in its first quarter and to 2.7 Million in the seasonally weaker second quarter. However, this is still less than the average number of subscribers that it gained during the peak pandemic.

Analysts believe that the company will see growth in subscribers from emerging regions, where it has reduced prices. However, increased prices would be used to fund new content.

Dan Morgan, Synovus Trust Senior Portfolio Manager, stated that investors are unable to see the catalyst for a significant re-acceleration of net additions over the long-term.

GRAPHIC: Netflix’s revenue growth over nearly eight years https://graphics.reuters.com/NETFLIX-RESULTS/klvyklekrvg/chart.png

GRAPHIC: OTT platforms viewer share in the U.S. https://graphics.reuters.com/STREAMING-SUBSCRIBERS/gkplgqrrmvb/chart_eikon.jpg

THE CONTEXT

Netflix purchased three gaming studios as a way to diversify revenue streams, though analysts are not expecting a huge increase in revenues.

Morningstar analyst Neil Macker explained that video games are “not very convincing” to users and is a “distraction” from core business.

Disney+ is Netflix’s biggest challenger. It launched late in 2019 and anticipates having between 230 million-260 million users over the next two year. Subscribers to platforms such as HBO Max, Apple TV+, and Amazon Prime are also on the rise.

Although Netflix received several Academy Award nominations, Apple was the first streaming company ever to be nominated.

GRAPHIC: Netflix vs FAANG https://fingfx.thomsonreuters.com/gfx/buzz/movanomknpa/9bd9aced-d6c2-43df-a338-262aa9b0edfc.jpg

FUNDAMENTALS

* Analysts estimate Netflix’s first-quarter revenue to grow 10.7% to $7.93 billion when it reports results on April 19

* Earnings per share is estimated at $2.90

* The stock has lost 43.4% of its value this year, making it the worst performing FAANG stock

WALL ST. SENTIMENT

* 25 out of 46 analysts rate the stock “buy” or higher, while 18 have a “hold” rating and three rate it as a “sell” or lower

* The median price target is $500; prior to Q4 earnings PT on stock was $700.

** NFLX trading at $334.17 currently

QARTER ENDING FINITIV IBES Actual BEAT, Met

ESTIMATE MISSERVED

Dec. 31 2021 0.82 1.33 Beat

Sep. 30 2021 2.56 3.19 Beat

Jun. 30 2021 3.16 2.97 Missed

Mar. 31 2021 2.97 3.75 Beat

Dec. 31 2020 1.39 1.19 Missed

Sep. 30 2020 2.14 1.74 Missed

Jun. 30 2020 1.81 1.59 Missed

Mar. 31 2020 1.65 1.57 Missed