Netflix's Stock Tumbles After Q2 Flop on Subscriber Growth
Streaming giant’s shares drop more than 10% after it missed Q2 subscriber growth projections by more than 2 million customers
Netflix’s ugly Wednesday bled into Thursday morning, with the streaming giant’s stock dropping more than 10% during its first hour of trading, one day after reporting it had fallen well short of hitting its second quarter subscriber projections.
Netflix was trading at $324.43 per share in early-morning trading, marking a 10.5% decline from where it closed the day before. The drop came after Netflix reported it added only 2.7 million new customers during Q2 — more than 2 million less than Wall Street analysts and the company’s own projections had anticipated — and even saw a decline in U.S. subscriptions, with 126,000 domestic subscribers bailing.
The company, in its letter to shareholders, blamed its recent price hikes on the minor exodus.
After adding its latest customers, Netflix now has 151.6 million global subscribers. Despite flopping on subscriber growth, Netflix did post better-than-expected earnings and its $4.92 billion in revenue essentially matched Wall Street estimates.
More to come…
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