Netflix, Inc. (NASDAQ:NFLX) had a blockbuster year last year, but can the tear the company’s stock has been on continue this year? We may get some hints in Netflix’s next earnings report, which comes on Wednesday.

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Netflix investors have knee-jerk reactions

If 2013 has shown us anything, investors have tended to have knee-jerk reactions to Netflix, Inc. (NASDAQ:NFLX)’s earnings report. As Seeking Alpha contributor Quoth the Raven notes, the company’s stock will probably react significantly—in whichever direction they end up going. Over the last 12 months alone, shares rose more than 230%, although the stock pulled back recently after the company received a big downgrade from Morgan Stanley.

The Seeking Alpha contributor calls Wednesday’s earnings report a “binary event,” which basically just means that it’s an upcoming event which will have only one of two outcomes. Either Netflix stock will move up in a big way or down in a big way. The writer notes that binary events not only carry potential for investors to make lots of money, but also a lot of risk. As a result, investors should always evaluate the information which is available before deciding what to do with shares of Netflix, Inc. (NASDAQ:NFLX).

Items to watch in Netflix’s earnings

In particular, there will be a few parts of Netflix, Inc. (NASDAQ:NFLX)’s earnings report investors will be keeping an eye on. Of course subscriber growth is a big one, as many analysts are predicting to see at least 2 million more new users added during the December quarter. Also plans for international expansion are undoubtedly going to be a big deal as Netflix looks beyond the U.S. for additional growth. The company slowed down its international growth in 2013, but it is expected to ramp up its plans and possibly add at least one new market by the end of the year.

Margins are also expected to be important, as they should increase as Netflix continues to produce original content. According to Demitrios Kalogeropoulous of The Motley Fool, streaming margins are particularly important because they show signs of just how profitable Netflix is overall. Investors will want them to remain above 20%.