$Netflix Inc (NFLX.US) $The latest quarterly results will be released after U. S. stocks closed on April 19, Eastern time. Netflix Inc's earnings per share are expected to be $2.90 in the first quarter, down 22.7 per cent from a year earlier, while revenue was $7.93 billion, up 10.7 per cent from a year earlier.

In the past eight quarters, Netflix Inc's earnings per share exceeded market expectations three times. Netflix Inc has fallen 43.4% this year, making it the worst-performing FAANG stock.

The weakness of new users

Analysts expect Netflix Inc to add 2.6 million subscribers in the first quarter and 2.7 million in the seasonally weak second quarter, still below the average number of new subscribers at the peak of the epidemic, according to Refinitiv.

Analysts say the company's subscriber growth will come from developing regions, where the company has cut prices, while price increases in the US and Canada will fund new content. At the same time, Netflix Inc could lose about 1 million subscribers by withdrawing from Russia.

"in the long run, it will be difficult for most investors to see a catalyst for Netflix Inc's net growth to accelerate significantly again in fiscal year 2023 or more," said Dan Morgan, a senior portfolio manager at Synovus Trust. "

Netflix Inc is investing billions in more original movies and TV dramas and developing mobile games to increase users in a post-epidemic world and compete fiercely with HBO Max, Amazon.Com Inc and Walt Disney Company.

Enter the game field?

Netflix Inc has acquired three game studios to diversify revenue sources, but analysts don't expect a big increase in revenue from video games any time soon.

"We don't really believe that users will really regard video games as a secondary feature," said Neil Macker, an analyst at Morningstar. He added that the move was only a "distraction" from its core business.

Netflix Inc's most powerful challenger is Walt Disney Company +, which was launched at the end of 2019 and is expected to have about 230 million to 260 million users in the next two years. The number of subscribers to platforms such as HBO Max, Apple TV+ and Amazon Prime has also increased significantly.

Netflix Inc has been nominated for Academy Awards many times in the past, while Apple Inc became the first streaming company to win an Oscar for best picture for her "CODA".