Netflix (Q2 earnings 16 July)
Netflix is expected to report earnings of 88.8 cents per share, and revenue of $3.9 billion, up 261% and 41% year-on-year respectively. Having seen its shares double since the beginning of the year, there will be more than a few investors questioning whether the rally can continue.
Subscriber growth of course remains the key metric, but of interest will be the content budget, with recent reports suggesting that the firm will spend as much as $13 billon on original programming for 2018. This is far in excess of the $8 billion planned as of last October, and would represent a huge increase for Netflix and put it far ahead of rivals. HBO and CBS combined spent $6.5 billion in 2017, so Netflix will be spending double this next year.
Alphabet (Q2 earnings 23 July)
The earnings of Alphabet's Google will need to cover the important areas of cloud computing, YouTube and hardware. Cloud computing arguably made Amazon into the web giant it is today, and it may well help Google further along the road to a $1 trillion valuation. Combined with hardware, the division produced revenue of $4.4 billion for the first quarter (Q1) of this year, up from $3.2 billion a year earlier.
YouTube remains the engine of growth however, and the solid growth in creators earning six figures on the platform reveal why Google expects further growth from this in the years to come. Alphabet is expected to report 9% in growth for earnings this quarter, to $12.22 per share, while revenue is forecast to grow 22.6% to $25.6 billion.
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