Netflix set to report earnings on Tuesday after the bell

Yahoo Finance's Akiko Fujita and Dan Howley discuss Netflix ahead of its quarterly earnings report.

Video Transcript

AKIKO FUJITA: Let's move on to what we are expecting tomorrow, because we've got Netflix out with their big earnings report. Dan Howley is breaking that down for us. Dan, user growth, we've talked a lot about that for Netflix. Those subscribers increasing throughout the pandemic, but how sustainable are those numbers going to be?

DAN HOWLEY: Yeah, a lot of experts here-- analysts-- are looking at around 2.5 million ads-- global paid ads-- for the quarter. That's not obviously nearly as high as they had seen previously. But you know, it does kind of lend credence to the idea that there was some pull forward for subscribers because of the pandemic.

This has been one of the stocks that's really benefited the most from stay-at-home orders and the fact that a lot of venues, different forms of entertainment, aren't really open to people, yet. So many people have been just spending their time on the couch watching Netflix. I think that's really what we're going to see is the 2.5 million. But obviously, we want to see what they have to say about new shows coming in the next few months, because production obviously was at a standstill for some time.

AKIKO FUJITA: OK, we'll be watching. Netflix up about well over 1% ahead of those earnings. Thanks so much for that, Dan.