‘Squid Game’ is a huge hit. That may not be enough for Netflix
A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up The company’s guidance will be key too. Analysts are predicting an even bigger surge in users in the fourth quarter — an increase of more than 8 million to 221.4 million. Netflix’s stock typically thrives or dives after earnings because of the company’s subscriber outlook. And there may be added pressure on the company to deliver a bullish forecast.That’s because many analysts are extremely upbeat on Netflix’s stock. Of the 45 who cover the company, 33 have buy ratings on the shares. If Netflix’s outlook disappoints, the stock could suffer a fate almost as violent as unlucky losers on “Squid Game.”Tougher competition for Tesla?Elon Musk’s electric car giant is expected to report strong third quarter results after the closing bell Wednesday. Analysts are forecasting a nearly 55% surge in sales for Tesla (TSLA), to $13.5 billion. Wall Street also is predicting a profit of $1.6 billion, almost double a year ago.Investors have rewarded Tesla’s success. The stock is up more than 15% in 2021 and the company is now worth $820 billion, making it the sixth most valuable company in the S&P 500.But as impressive as that sounds, Wall Street is also starting to think that traditional automakers will soon eat into Tesla’s electric vehicle dominance. Detroit rivals GM and Ford have both recently pledged to invest even more in the EV market. Shares of GM (GM) have soared nearly 40% this year while Ford’s (F) stock has skyrocketed more than 75%.Monday: US industrial production; Earnings from Albertsons, Philips and State Street; Apple product eventTuesday: US housing starts; Earnings from Johnson & Johnson, Procter & Gamble, Travelers, United Airlines and Netflix Wednesday: Euro area consumer price index; China interest rate decision; US Fed’s Beige Book; Earnings from Verizon, IBM and TeslaThursday: US jobless claims: US existing home sales; Earnings from AT&T, American Airlines, Southwest, Intel, Chipotle, Mattel and SnapFriday: UK retail sales; Earnings from American Express and Honeywell
