Netflix shares plummet after company reveals disappointing subscriber growth

Cornelia Mascio
Luglio 17, 2018

Worldwide Netflix added 4.47 million subscribers below the 5 million predicted. While it's one thing for Netflix to fall short of Wall Street expectations, it's another matter entirely for Netflix to fall short of its own internal projections.

Stock was down more than 13% in after-hours trading.

Well to many adding 4.47 million subscribers and hitting a new all-time high in subscribers sounds great to wall street they wanted to see a higher subscriber count. Netflix is hoping a flood of content from new sources including the Obama family will help push new subscribers to the service.

However, GBH Insights saw the Netflix subscriber forecast miss as a "speed bump", rather than start a downward trend, reasoning that the "content arms race continues to be a major tailwind" for the company. Nonetheless, it's not all doom and gloom for Netflix. Far from it, revenue for the quarter checked in at $3.1 billion, a modest 10% increase from the same quarter a year-ago. The company garnered 112 Emmy Awards nominations last week, more than any other television network.

The Netflix logo is shown in this 2014 illustration photograph.

Netflix had an average of 124.4 million paying subscribers in the quarter, up from 118.9 million in the first quarter but below its guidance of 125 million.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE