Netflix and Intel are set to report earnings this week, with investors closely tracking whether advertising growth and artificial intelligence exposure can sustain their respective growth and turnaround stories, according to Zavier Wong, Market Analyst at eToro.
For Netflix, advertising has emerged as a central pillar of its business model, marking a decisive shift from its earlier subscription-only approach. As the world’s largest streaming platform with more than 300 million subscribers globally, Netflix is increasingly relying on its ad-supported tier to unlock growth in both mature and emerging markets.
Market estimates suggest Netflix’s advertising revenue could reach around US$5 billion in 2026, driven by wider rollout of its lower-priced ad tier, improved targeting capabilities, and growing advertiser demand for premium streaming inventory. Paid sharing initiatives have further expanded the company’s addressable audience, strengthening the case for advertising-led scale.
Netflix’s upcoming earnings are expected to reflect solid operational performance, supported by a strong content slate during the quarter. High-profile releases such as the Stranger Things finale, NFL Christmas Day games, and the Jake Paul versus Anthony Joshua fight are likely to underpin double-digit revenue growth, while margins are expected to continue improving.
“With advertising now firmly embedded in Netflix’s strategy, investors are watching closely to see how quickly it can scale into a meaningful profit driver,” Wong said. “The focus is not just on subscriber growth anymore, but on how effectively Netflix can monetise its global audience.”
Despite this momentum, Netflix shares have fallen more than 30% over the past six months amid broader market volatility. Investor caution has also been fuelled by the company’s proposed US$83 billion acquisition of Warner Bros Discovery’s studio and streaming assets, a deal that could significantly enhance Netflix’s content library but raises concerns around regulatory approval and balance sheet risk.
Looking ahead, guidance for 2026 will be closely scrutinised. Markets are currently pricing in revenue growth of at least 13% for the year. Any indication of slower growth could weigh on sentiment, particularly as the US and Canadian markets remain largely saturated. As a result, international markets — where advertising penetration is still relatively low — are expected to play a growing role in future expansion.
Meanwhile, Intel enters earnings as one of the strongest performers on the S&P 500 this year, with shares up more than 30%. The rally reflects renewed confidence in its turnaround strategy and rising global demand for artificial intelligence technologies.
Intel has benefited from increased strategic support, including a US government stake and closer partnerships with major industry players such as Nvidia. However, near-term margin pressure is expected to persist due to ramp-up costs linked to its advanced 18A manufacturing process.
Investors will be watching closely for signs that margin pressures are stabilising and that Intel Foundry Services can capitalise on capacity constraints across the semiconductor industry. Options markets are pricing in an approximate 8% move in Intel’s share price following earnings, highlighting expectations of elevated volatility.
Consensus forecasts call for Intel to report quarterly revenue of US$13.4 billion and earnings per share of US$0.08, with markets looking for clear evidence that its manufacturing roadmap is translating into sustainable execution.
