Investors are turning their attention to Netflix as the streaming giant prepares to report quarterly earnings on Thursday, with expectations that it will highlight content spending and its growing advertising business as key growth drivers. The results come shortly after its failed bid for Warner Bros Discovery.
Had the acquisition succeeded, Netflix would have gained access to major franchises such as Game of Thrones and Friends, avoiding the cost of building comparable intellectual property internally.
Instead, the company now faces the prospect of intensified competition from a potential combined entity involving Warner Bros and Paramount Skydance, should a proposed $110 billion deal be completed.
Analysts polled by LSEG expect Netflix to report a 15.5% rise in revenue to $12.18 billion for the first quarter, with about $634 million generated from advertising.
The company also raised U.S. subscription prices in March, a move analysts say could lift full-year revenue guidance while potentially pushing more users toward its ad-supported tier, which still contributes a relatively small share of total earnings.
Netflix shares have risen 13% so far this year and are up roughly 26% since the company abandoned its $72 billion bid for Warner Bros Discovery.
Investors are increasingly expecting the company to deepen its focus on sports and live programming to further strengthen its advertising revenue stream.
“We’re kind of entering another phase for the ad business, where they are becoming one of the largest scaled global advertising platforms,” said John Belton, portfolio manager at Gabelli Funds, which holds Netflix shares.
During the quarter, Netflix expanded its live content slate, including a concert by K-pop supergroup BTS streamed from Seoul that attracted 18.4 million global viewers, as well as coverage of the 2026 World Baseball Classic, which became the most streamed baseball game worldwide.
Boluwatife Enome
Follow us on:
