Netflix Earnings and Trump Inauguration: What to Expect in the Week Ahead

As the week begins, investors are bracing for two significant events: Netflix's earnings report and the inauguration of President Donald Trump. Both events are expected to have a substantial impact on the market, and investors are eager to understand what to expect in the coming days.

Netflix's earnings report, scheduled for Thursday, is expected to provide valuable insights into the company's performance and growth prospects. Analysts anticipate that Netflix will report earnings per share of $5.40 on revenue of $9.83 billion. The company's ad-tier memberships have been growing rapidly, with a 35% quarter-over-quarter increase and accounting for more than 50% of sign-ups in countries where it is available. This growth is expected to continue, as Netflix plans to launch the ad-tier in Canada in the coming quarter and more broadly in 2025.



Investors will be closely watching Netflix's subscriber growth, which is expected to be driven by the ad-tier and a strong content slate, including the second season of "Squid Game" and live sports events. The company's guidance for the fourth quarter suggests revenue of $10.13 billion and earnings per share of $4.23, reflecting the expected growth in the ad-tier and subscriber base.

As for President Trump's inauguration on Monday, investors are anticipating increased market volatility as the new administration takes office. Trump's proposed policies, particularly regarding tariffs and immigration, could have significant impacts on various sectors and asset classes. Investors are particularly concerned about the potential for tariffs to exacerbate inflation fears, pressuring bond and stock prices. However, the market may also react positively to Trump's vows to support blockchain technology and his personal and business ties to the cryptocurrency industry, which have lifted cryptocurrency prices since his reelection.



Investors should expect a volatile week ahead, with potential impacts on various sectors and asset classes. As Netflix reports its earnings and President Trump is inaugurated, investors will be closely watching the market's reaction to these events. By staying informed and maintaining a balanced portfolio, investors can position themselves to take advantage of opportunities that may arise in the coming days.

In conclusion, the week ahead promises to be an exciting and volatile one, with Netflix's earnings report and President Trump's inauguration expected to have significant impacts on the market. By staying informed and maintaining a balanced portfolio, investors can navigate the challenges and opportunities that lie ahead.