Netflix won't announce its latest financial results until Monday, but one Wall Street firm predicts they'll be typically impressive.
According to GBH Insights, the streaming service attracted a better-than-expected number of subscribers in the last three months of 2017. This means its shares "should handily exceed [Wall] Street's estimates across the board," according to Daniel Ives, head to technology research at GBH Insight.
This impressive forecast is based on Netflix's strong competitive advantage and franchise appeal, its ability to increase its international streaming subscriber base until 2020 and raft of original content offerings which "will translate into robust profitability and growth as the next phase of this story plays out over the coming year."
All this results in a price target increase of 15 per cent for Netflix shares.
Ives estimates the service attracted 7 million new subscribers during the period, which is more than the 6.3 million predicted.
He says it will spend between $7 and $8 billion on content in 2018. It will up its budget for original content to 50 per cent by 2020, up from 25 per cent last year.
He added that the growth of streaming means "Netflix has a long runway of growth and opportunity ahead of itself and clear first mover advantage despite intense competition from larger media players (Disney), pure play competitors, and new potential entrants (e.g. Apple)."
We'll find out next week.