Netflix earnings stir search for catalyst as shares fall 19% this year

According to CNBC, Netflix is set to report earnings after the bell on Thursday as analysts struggle to identify a meaningful catalyst for the stock, which is down 19% year to date and more than 40% over the past 12 months. Jefferies said it was still searching for a catalyst, Citigroup pointed to a lack of catalysts, and Morgan Stanley said the company’s catalyst path was tricky. Guggenheim said in a Wednesday client note that a survey of more than 100 online investors showed Netflix was the top short-selling idea heading into second-quarter earnings. Analysts are also watching for signs of an acquisition, after recent sector deals including the pending purchase of Warner Brothers Discovery by Paramount Skydance and the planned spin-off of NBCUniversal from Comcast. Bank of America’s Jessica Reif Ehrlich said Netflix’s M&A posture looks more active than its historic builder-not-buyer stance, though she questioned whether the company could retain its premium after a deal. The Wall Street Journal reported in July that Netflix is also considering adding live television and bundled subscriptions. In April, the Journal said Netflix wanted by 2030 to double revenue from $39 billion and reach a market capitalization of $1 trillion, versus about $310 billion currently, according to FactSet data.