Tuesday, 17 July 2018

Alarm for Netflix as shares plummet on worse-than-expected subscriber growth.

The Netflix office in Hollywood. In total, the company said it had added 670,000 streaming customers in the US, barely more than half its anticipated 1.2 million subscribers. Photograph: Lucy Nicholson/Reuters
Netflix, the streaming giant behind hits like The Crown and Stranger Things, missed its own forecasts by more than a million subscribers, sending its shares down sharply.

The company second-quarter results, announced on Monday, spooked investors and suggested the company’s explosive subscriber growth may now be slowing. Netflix shares fell 14% to $346.05 in after-hours trading in New York.

For the second quarter, Netflix reported a profit of $384.3m, or 85 cents a share, up from $65.6m, or 15 cents a share, a year earlier.

The company blamed the surprise subscriber target miss on faulty internal forecasting.

By Edward Helmore.

Full story at Yahoo News.

No comments:

Post a Comment