The streaming wars have calmed somewhat in 2022 as an unpleasant economic environment has put a
cap on growth in this sector. Netflix (NASDAQ:NFLX) remains the top streaming service compared to its
peers. However, it is facing major challenges going forward.
Shares of Netflix have plummeted 59% in 2022 as of close on Thursday, September 29. That has
represented the bulk of its losses in the year-over-year period. The stock has dipped 36% over the past
half year.
Netflix is expected to release its third quarter fiscal 2022 earnings on the afternoon of Tuesday, October
18. In Q2 2022, the company lost around 970,000 subscribers. That meant that its loss shrank from the 2
million subscribers it shed in the first quarter of fiscal 2022. It reported total revenue of $7.97 billion –
down from $8.03 billion in the second quarter of fiscal 2021. However, Netflix’s earnings per share rose
to $3.20 – up from $2.94 per share in the previous year.
This company expects that it will deliver net subscriber growth of 1 million in the third quarter. That
should help reverse a fraction of Netflix’s subscriber losses in 2022.
Netflix stock currently possesses a price-to-earnings ratio of 21, which puts this tech stock in very solid
value territory. Meanwhile, it is still on track to deliver strong earnings growth going forward. This
company is still the top dog in the worldwide streaming business, and that is unlikely to change in the
2020s.
