Market bullish on Netflix results

Netflix Inc. will tell investors today how the ongoing COVID-19 pandemic affected membership in the third quarter — a period when analysts remain bullish on the company despite the return of live sports and more streaming competition.

Shares of the online video pioneer, trading close to an all-time high at US$530.79 on Friday, have jumped more than 75 per cent since midMarch, when governments around the world imposed stay-at-home orders to help slow the spread of the novel coronavirus. During the same time, the S&P 500 has gained 44.8 per cent.

In July, Netflix forecast it would add 2.5 million new paid streaming customers globally between July and September, based on the expectation that its strong firsthalf performance — in which it added almost 26 million subscribers — likely pulled forward some demand from the second half of the year.

Analysts have been more optimistic, citing stronger Netflix content in the quarter and the fact that many people are still staying home because of the pandemic. As of Oct. 18, they projected 3.4 million new subscribers, according to

IBES data from Refinitiv.

Hurdles for Netflix in the third quarter included the return of live sports, the easing of restrictions in some economies, and competition from Comcast Corp-owned NBCUniversal streaming service Peacock and AT&Towned WarnerMedia’s streaming entry, HBO Max. Peacock fully launched in the United States on July 15 and, as of September, had over 15 million sign-ups, according to Comcast. AT&T said in July that HBO Max attracted 4.1 million customers in its first month; investors are awaiting subscriber updates during AT&T’s Oct. 22 third-quarter earnings release.