Netflix Earnings: Wall Street Hopes Ad Tier, Password Crackdown Will Reignite Growth

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Investors and analysts will see if the streamer’s revenue-boosting efforts are bearing fruit when it releases quarterly earnings Tuesday

LOS GATOS, CA – JANUARY 22: A sign is posted in front of the Netflix headquarters on January 22, 2014 in Los Gatos, California. Netflix will report fourth quarter earnings today after the closing bell. (Photo by Justin Sullivan/Getty Images)

To be honest, Wall Street probably doesn’t care that much what numbers Netflix reports as earnings season kicks off on Tuesday. What investors want to see, analysts say, is that the streamer’s efforts to reignite growth — in a new ad tier and a crackdown on password sharing — are paying off.

“Following strong subscriber growth numbers at the end of last year, it will be important to see what momentum Netflix was able to carry into 2023,” Third Bridge analyst Jamie Lumley told TheWrap. “The first quarter of the year has historically been weaker for subscriber growth, but with recent price hikes from competitors like Disney and Warner Bros Discovery, Netflix may have had the opportunity to pick up more subscribers.”