Netflix’s Stock Is Rising on the Promise of Ads and a Crackdown on Password Sharing

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It almost doesn’t matter what the streamer reports for third-quarter earnings as Wall Street bets on the company’s near-term strategy

Netflix Q3 earnings
Netflix (Getty Images, TheWrap)

Wall Street is betting on a big comeback for Netflix after a no good, terrible start to 2022 where the streaming giant hemorrhaged subscribers amid fierce competition from the likes of Disney, Paramount and Warner Bros. Discovery.

Netflix posts third-quarter results after the stock market closes Tuesday, and co-chief executives Reed Hastings and Ted Sarandos will lead a call with Wall Street analysts to map out their strategy. They are charging full-speed ahead to launch an advertising-supported version of the platform in November, and on Monday unveiled the first step to cash in on the massive number of subscribers who share passwords.