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Netflix is poised to report record earnings and revenue after the bell, but the streaming giant's stock is not necessarily going to jump on the expected good news, if history is any guide.
Wall Street analysts are looking for a stellar second quarter for Netflix as it experienced a surge in demand amid the coronavirus-induced lockdown. Netflix is expected to have earned $1.82 per share on revenue of $6.08 billion, a jump from EPS of 60 cents and sales of $4.92 billion from the same quarter last year, according to FactSet.
However, the second-quarter earnings season happens to be the one where Netflix typically experiences the worst response in terms of its price reaction, according to Bespoke Investment Group, who looks at data going back to 2001.