Netflix (NASDAQ: NFLX) delivered impressive financial and operational figures in the third quarter. However, it shouldn’t come as a surprise to users using his website traffic screener from TipRanks. TipRanks’ website traffic screener shows Netflix’s web traffic is increasing, suggesting that improved user engagement could lead to an increase in subscribers in Q3.
Web traffic to netflix.com increased 6.63% quarter-over-quarter in the third quarter, according to the tool. Given the increase in traffic, Netflix announced that it is more engaged and accounts for more TV viewing time than its peers.
According to the company, Netflix accounts for 7.6% of TV viewing time in the US, about 2.6 times more than Amazon (NASDAQ:AMZN) and 1.4 times more than Disney+. Additionally, NFLX accounts for 8.2% of video views in the UK, about 2.3x more than Amazon and 2.7x more than Disney+.
Thanks to higher engagement, Netflix added 2.41 million paying subscribers in Q3, well above its 1 million guidance. What stands out is the excellent performance in the APAC (Asia Pacific) region. Netflix added 1.43 million paying subscribers in the third quarter, well ahead of other regions.
For Netflix, it’s worth highlighting that the website’s traffic predictions have been correct for three consecutive quarters. In the second quarter, our website his traffic screener correctly predicted that Netflix would lose subscribers. This caused earnings to fall short of analyst expectations.
Netflix recovered in Q3, but let’s use TipRanks’ website traffic screener to predict what Disney+ will look like in Q4.
Website traffic shows upward trend for Disney+
For Disney’s (NYSE:DIS) flagship subscription-based streaming service, Disney+, the tool shows that web access is on the rise, indicating continued improvement in demand. increase. The data shows that disneyplus.com traffic increased 10.91% quarter-on-quarter in Q4.
Notably, Disney+ added 14.4 million subscribers during the last reported quarter.
Web access trends indicate that Disney may continue to add more subscribers in the fourth quarter. Disney will release his fourth quarter results on November 8th.
See how website traffic can help you research your favorite stocks.
Conclusion
Streaming service providers face the daunting task of capturing a larger share of users’ wallets due to saturated developed markets and increased competition. So our web traffic screener will help you gain insight into what happens before the earnings report.
On the other hand, at TipRanks, Netflix stock has a hold consensus estimate based on 10 buy, 14 hold, and 5 sell recommendations. Unfavorable currency movements and increased content and marketing spending could weigh on revenue and operating margins in the near future.
Conversely, Disney stock receives 14 buy and 3 hold recommendations against a strong buy consensus rating. An upward trend in web traffic suggests that Disney’s earnings could beat expectations next quarter.
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