Market participants decimated Netflix (NASDAQ: NFLX) stock as the streaming giant lost subscribers in Q1. Now, as Netflix is set to announce its Q2 results, TipRanks’ website traffic screener shows that the worst is still not over for the company.
Website Traffic Data for Netflix
Per the screener, the number of visits to netflix.com was down 10.71% quarter-over-quarter in Q2. Moreover, website traffic declined by 16.57% on a year-over-year basis in Q2. Learn how Website Traffic can help you research your favorite stocks.
The decline in website visits indicates that Netflix’s business continues to face a slowdown. This also aligns with management’s guidance, wherein it stated that its Q2 subscriber base could register a 2% decline on a quarter-over-quarter basis.
Echoing a similar sentiment, Wedbush analyst Michael Pachter expects Netflix to lose subscribers in Q2. However, Pachter believes that Netflix will lose fewer subscribers than it guided for during the Q1 conference call.
In its Q1 letter to shareholders, Netflix announced that its global paid membership base would decline by 2 million subscribers sequentially. However, Pachter expects Netflix to lose 1.5 million subscribers.
According to the analyst, the “staggered release date for Stranger Things 4, which has very strong viewership,” will likely help Netflix exceed its Q2 guidance.
Website traffic trends and management’s guidance point to downbeat Q2 numbers for Netflix. Meanwhile, analysts maintain a neutral view on NFLX stock ahead of its earnings.
It has received 10 Buy, 23 Hold, and six Sell recommendations for a Hold rating consensus. Meanwhile, the average Netflix price target of $250.30 implies 31.1% upside potential to current levels. Furthermore, it sports a Neutral Smart Score of 7 out of 10.