Here's what to watch in Netflix's earnings

Core Insights - Netflix is expected to report a revenue growth of 17%, an acceleration from the previous quarter's 16%, with EPS anticipated to grow by 29% [2] Group 1: Viewer Engagement and Advertising - Key items to watch include trends in viewer engagement, particularly after previous concerns, with optimism surrounding the success of "K-pop Demon Hunters" [3] - Analysts are looking for updates on Netflix's new ad platform and its partnership with Amazon ads, forecasting that ads will contribute to 30% of the company's topline growth through 2030 [4] Group 2: M&A Considerations - Netflix is among the potential buyers for Warner Brothers Discovery, with sources indicating interest from other companies like Comcast and Paramount [5] - Despite Netflix management previously downplaying M&A, shareholder conversations suggest support for a deal, particularly to secure new content and libraries [5][9] - The valuation disparity between Netflix as a tech company and traditional media companies raises questions about the financial sense of an acquisition [9] Group 3: Stock Performance - Netflix shares have remained relatively flat since the last earnings report in July, but the stock has increased over 60% in the past year, with 69% of analysts maintaining a buy rating [6]