In 2023, Netflix (NASDAQ:NFLX) has been on a steady rise, with its shares gaining 28.8% year to date, surpassing the Zacks Consumer Discretionary sector’s increase of 4.6%. This growth can be attributed to Netflix’s expanding subscriber base and its robust content lineup.
Netflix is continuously strengthening its international content catalog, and Italy is playing a significant role in this expansion. The platform offers a wide variety of series, films, docuseries, and unscripted shows in Italy, covering diverse genres, formats, and languages.
Recently, Netflix unveiled four exciting new projects, including “Il treno dei bambini,” a deep exploration of postwar Italy, and “Fabbricante di lacrime,” based on a popular book. Additionally, two new series, “Storia della mia famiglia” and “Adorazione,” dive into intricate family dynamics and the experiences of young adults.
Netflix’s growth is further fueled by its diverse content portfolio, backed by substantial investments in creating and distributing localized content in foreign languages. The platform is also expanding its international content library by introducing German Originals like “Dear Child” and K-dramas such as “Time Called You” and “Destined With You.”
“Dear Child” has performed exceptionally well, ranking second in the weekly Top 10 Non-English TV charts with 15.4 million views, while “Destined With You” and “Time Called You” are ranked second and fourth with 2 million and 3 million views, respectively.
This strong momentum in Netflix’s foreign-language content offerings is expected to drive its revenue growth, even in the face of fierce competition from other streaming giants like Apple (NASDAQ:AAPL), Disney (NASDAQ:DIS), and Amazon (NASDAQ:AMZN). Apple and Amazon have seen their shares rise by 34.5% and 53.7%, respectively, year-to-date, while Disney’s shares have declined by 6.5%.
For the third quarter of 2023, Netflix anticipates earnings of $3.52 per share, representing nearly a 10% increase from the same quarter in the previous year. Total revenues are expected to reach $8.52 billion, indicating a 7% year-over-year growth on a forex-neutral basis.
The Zacks Consensus Estimate for Netflix’s third-quarter revenue stands at $8.53 billion, suggesting a 7.59% year-over-year growth. Additionally, the consensus estimate for earnings has increased by a penny in the past 30 days, reaching $3.49 per share.
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