Netflix earnings: 3 trends to watch

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Netflix Inc (NASDAQ: NFLX) shares trounced the market in 2020 as the streaming video giant capitalised on soaring global demand for at-home entertainment.

Subscriber growth and engagement metrics jumped, and the business also posted rising margins and a dramatic – if temporary – improvement in cash flow trends.

Investors are bracing for a reversal of a few of those positive trends over the next few quarters as streaming demand settles back down to a more normal level. Netflix is predicting an unusually weak fiscal fourth quarter, for example. Yet CEO Reed Hastings and his team might still have plenty of good news for…