Put Squid Game aside. When Netflix reports earnings later today, Wall Street’s evaluation of the company’s progress will boil down almost entirely to subscriber growth. With Netflix, that’s the figure that moves the stock, far more than traditional financial metrics like revenue, profits, and cash flow.
It’s not that investors don’t care about profits, but they see Netflix’s (ticker: NFLX) ability to grow subscribers as the simplest measure of success. If viewers like the content, they sign up, stream more, and stick around.
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