Netflix Earnings On Deck As Investors Weigh Valuation, Content Strength

Netflix is set to report second-quarter earnings.

Wall Street remains split on Netflix’s valuation. I Photo: Stranger Things Facebook

Shares have surged roughly 40% year-to-date, fueling a heated Wall Street debate over the company’s valuation, especially as the streaming giant pivots toward live events and sports, Yahoo Finance reported via Allie Canal.

According to Bloomberg consensus estimates, Wall Street expects revenues to reach $11.06 billion (versus $9.56 billion last year), with Netflix's guidance: $11.04 billion, and earnings per share to hit $7.09 (versus $4.88 last year), under Netflix's guidance: $7.03 in Q2.

Analysts will pay close attention to metrics beyond subscriber growth, which the company stopped reporting to emphasize engagement and top-line expansion. Netflix ended 2024 with 301.6 million global subscribers and has said it will only disclose subscriber numbers when it reaches new “key milestones.”

Wall Street remains split on Netflix’s valuation.

The stock is currently trading at around 40 times forward earnings—a significant premium over the broader market and even compared to some fellow tech giants.

In a recent note, JPMorgan cautioned that investor optimism might already be priced in. The firm reiterated a Neutral rating and maintained a price target of $1,220 per share. Others, however, argue that Netflix’s bold content strategy justifies the valuation.