Netflix to report a solid quarter – but is it just because of Stranger Things?

Netflix (NASDAQ: NFLX) is broadly expected to report a strong quarter on Jan. 20, driven largely by the final season of “Stranger Things” that pulled back lapsed subscribers and kept engagement high throughout the holiday period.

Consensus is for the streaming giant to earn 55 cents on a per-share basis in its Q4 – up an exciting 28% year-on-year. Its revenue is also seen climbing to $12 billion in the fourth quarter.

Yet, for investors that have been wary of the uncertainty surrounding NFLX’s attempt to purchase Warner Bros. Discovery assets already, what’s more important is whether this company can sustain momentum now that the Stranger Things tailwind is over.

At the time of writing, Netflix shares are down some 33% versus their 52-week high as investors wait and watch how the WBD situation develops, especially now that Paramount has sued Warner Bros. Discovery for picking NFLX’s bid over its own, which it asserts is actually “superior”.

What’s next for Netflix stock after Stranger Things?

According to Wedbush’s senior analyst Alicia Reese, however, the quarterly strength investors will likely see from Netflix on the coming Tuesday is far from temporary, or driven mostly by Stranger Things only.

Wedbush’s recent survey confirms subscriber numbers remained steady in the fourth quarter even after that TV show ended, she told CNBC in a recent interview.

In fact, a significant number of subscribers who had been away for at least three months “returned” to NFLX in recent months – and not just for Stranger Things.

Many of them returned to catch up on other buzzy titles like “Bridgerton” or the upcoming “WWE” content on the streaming platform, Reese added.

The Wedbush analyst emphasized that Netflix’s massive content library ensures quarter-on-quarter engagement, making it less vulnerable to single-title fatigue.

In her view, the company’s content pipeline and subscriber loyalty point to a durable growth story, which warrants buying NFLX stock at current levels.

Are NFLX shares still a money maker?

Alicia Reese continues to see Netflix stock as a “money maker with or without the WBD assets”. On the CNBC interview, she especially pointed to the massive advertising opportunity that remains overlooked by the market.

Reese described Netflix’s ad load as “the lowest of any streamer or of course any linear TV,” which makes the experience far less intrusive for viewers.

According to Wedbush’s survey data, retention among ad-tier subscribers has been improving each quarter, with fewer customers switching away. “People don’t mind,” Reese said, adding that Netflix has room to slightly increase ad load without alienating users.

The profitability of this tier is already evident, and advertisers are flocking to the platform thanks to Netflix’s data leverage and partnerships with Amazon and other demand-side platforms.

For Netflix, the ad tier is not just a side experiment – it’s becoming a “core driver” of sustainable revenue growth.

And if the Warner Brothers deal does go through, she expects production to ramp up across both studios, further enhancing Netflix’s ad leverage.

All in all, for investors willing to look past short-term noise, Reese said Netflix stock remains worth owning in 2026.

The post Netflix to report a solid quarter – but is it just because of Stranger Things? appeared first on Invezz