Netflix user growth to prove recent correction is a spike

Netflix's third-quarter 2023 results will be announced on Wednesday after the stock market closes

The company has implemented a policy prohibiting the sharing of accounts outside the household

Will that reflect in the earnings, making the stock correction a buying opportunity?
The global entertainment landscape has undergone a transformative shift with the rise of streaming platforms, effectively eclipsing traditional media such as television.
Leading this digital revolution is Netflix (NASDAQ:NFLX), providing audiences access to an extensive library of movies and series for a modest subscription fee.

As we approach Wednesday, expectations are running high for the release of Netflix's third-quarter results, a key event in light of the platform's recent policy shift regarding password sharing.

Introduced in May of this year, this change aimed to curb the unauthorized sharing of accounts and appears to be having the desired effect, as user numbers continue to grow – a change that is poised to manifest itself in the forthcoming third-quarter figures.

Yet, intriguingly, despite Netflix's robust user growth, its stock has been navigating a broad correction phase, prompting speculation that the conclusion of this adjustment may yield results exceeding current forecasts.

In the lead-up to the results, all eyes are on Netflix's projected earnings per share, which currently stand at an estimated $3.48, alongside revenues totaling $8.53 billion.

Notably, the forecast has experienced a remarkable 24 upward revisions, with only 3 instances of downward revision, indicating a high level of market anticipation.