What to Expect From Netflix’s Q1 Earnings – and Wall Street’s Mysterious Response

”You have to be all right with shares reacting to a different set of data points,“ one top investment adviser says of the streaming giant’s business

There’s a secret ritual one Wall Street investment advisory chief uses to focus on a quarterly prediction about how Netflix stock will trend after an earnings report: “I play ‘Mysterious Ways’ by U2.”

The longtime stock picker said the song is about man’s struggle to understand the complexities of the unknown. Netflix, which reports first-quarter results Tuesday after the closing bell, is legendary on Wall Street for a stock that can plunge when it beats expectations or rally when it doesn’t. Instead, investors view subscriber growth as the key market-moving data — forcing profit, loss and revenue line items to take a back seat.

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Joe Bel Bruno

Joe Bel Bruno is TheWrap's Editor at Large, Business. He most recently served as the Founding Editor of the business news site dot.LA. He was previously the Managing Editor of Variety, and served as Deputy Business Editor and later Deputy Entertainment Editor at the Los Angeles Times. Bel Bruno also ran markets coverage for The Wall Street Journal. Before that, he was an award-winning reporter at the Associated Press in New York, and held senior posts in London and New York for Knight Ridder Financial.