Netflix earnings are one of the worst bets for investors since early 2020, which could make any potential buyers cautious ahead of the streamer’s second-quarter report on Tuesday. . In the 10 quarterly reports Netflix has released since the end of 2019, the company’s stock fell nine times the next day, according to data from Bespoke Investment Group. The next day moving average is -7.3%. Source: Bespoke Investment Group The first quarter of 2022, reported in April, was particularly bad for Netflix. Shares fell 35% in a day after the company reported a drop in revenue and an unexpected loss of subscribers. Netflix said it expected to lose an additional 2 million subscribers in the second quarter and announced that it was considering an ad-supported tier, reversing a long-standing aversion to ads. Netflix had another amazing drop in January, when shares fell more than 21% following fourth-quarter earnings. And even if the new season of “Stranger Things” hits Netflix in the second quarter, Wall Street analysts remain skeptical that the company is poised to reverse that trend this week. “While our analysis of [monthly active user] the data implies that the 2Q22 net is up -1mm above the guideline of -2mm, we have seen correlations break more recently and there is no confidence to move the estimates outside the guideline range . We also have a bearish bias on the H2 estimate, which includes sub-growth pressures and an F/X headwind to the financials. We think investors remain in Wait & Watch mode on NFLX,” Wells Fargo analyst Steven Cahill said in a note on July 13. Previously, subscriber growth was the metric. important each quarter for Netflix, but with the company guiding subscriber losses in the second quarter and investors increasingly focused on next steps, such as growing the ad tier and cracking down on division password sharing, management outlook and commentary are likely to be areas of focus this time around.The recently announced partnership with Microsoft, for Example, is sure to be a topic of conversation. However, Credit Suisse analyst Douglas Mitchelson said in a note to clients late Monday that there will likely be too many long-term questions for Netflix to recover this week. . ” quarter, we’ll suggest prominent questions around Netflix that will remain unanswered. Its minimal generation of FCFs hinders making a view of the stock’s value, while a substantial recovery in subscriber growth in future quarters will require a combination of growth rates Faster market growth, viral content success, and lack of competitive impact – each of which is uncertain at this point,” wrote Mitchellson. To be sure, a disappointing response to An earnings report doesn’t mean Netflix is necessarily bad for long-term investors. I believe there is considerable skepticism in the investor community that Netflix will be able to drive value addition with an ad-supported tier, creating opportunities on the long term if the company performs as we forecast. present,” writes Morris. — Michael Bloom of CNBC contributed to this report.