Netflix Stock Plummets after Missing Badly on Global Paid Subscribers
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Shares of Netflix were down 10% in extended trading Wednesday after the company released its earnings report for the second quarter. The results showed a rare loss in U.S. subscribers and a large miss on international subscriber adds.
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Here are the key numbers:
- Earnings per share: 60 cents, vs. 56 cents expected, per Refinitiv consensus estimate
- Revenue: $4.92 billion vs. $4.93 billion expected, per Refinitiv (Up 26% year over year.)
- Domestic paid subscriber additions: A loss of 126,000 vs. a gain of 352,000, forecast by FactSet
- International paid subscriber additions: 2.83 million vs. 4.81 million, forecast by FactSet
- Global streaming paid memberships: 151.56 million, up 21.9% year over year.
In addition to blaming its content slate for the quarter for weak subscriber growth, Netflix said its first-quarter subscriber growth was so strong that “there may have been more pull-forward effect than we realized.” The company also said in its letter to shareholders that the missed forecast was most pronounced in regions that saw price increases.
However, Netflix is projecting a stronger third quarter on the heels of heavy viewership of the third season of “Stranger Things.” Netflix forecast 7 million global paid net adds for the next quarter and provided revenue guidance of $5.25 billion. The company expects subscriber numbers will be boosted by its strong content slate in the third quarter, including the final season of “Orange is the New Black” and a new season of “The Crown.”
To read the rest of the CNBC article, click here.
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