Netflix's Q2 Earnings Could Impress: Analyst Predicts 30% Profit Growth From Ads, Price Hikes

As streaming giant Netflix Inc. (NASDAQ:NFLX) gears up for its second-quarter earnings on Thursday, MoffettNathanson analyst Robert Fishman says investors should look forward to a strong performance, led by price hikes and early momentum in the platform’s advertising business.

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What Happened: On Wednesday, Fishman said that he was “Expecting mid-teens revenue growth” during its second quarter, while speaking to CNBC’s Closing Bell Overtime, while pointing to pricing increases and the ramp-up of ad monetization as the two primary catalysts driving bottom-line gains.

“The result of these pricing increases and the early innings ramp up in the advertising monetization of their engagement really allows a lot of these revenue dollars to flow down to the bottom line,” he added. “So we're expecting 30% earnings growth this year.”

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Fishman believes that growth won't be a one-off either. He sees “that elevated level of earnings ...