When it comes to a stock like Netflix (NASDAQ:NFLX), quarterly earnings can receive a little too much hype. NFLX stock, after all, isn’t really an argument over what happened in the first quarter of 2019. It’s an argument, broadly speaking, over what the internet video landscape will look like in 2025, and 2035.
But earnings reports can change those projections. If Netflix’s subscriber growth suddenly stops, that might suggest less popularity and lower profits for years to come. But when it comes to half a million subscribers in one quarter, or a few pennies’ worth of earnings per share in another, short-term factors simply don’t matter as much as some in the media and some owners of NFLX stock believe.