Netflix: the Markets Disappointed by the Growth in the Number of Subscribers:
Despite its power, Netflix has no right to error and the financial markets have been quick to remind him. The streaming service was heavily sanctioned on the stock market yesterday, its stock losing more than 14% of its value in trade after closing. The reason? Subscriber growth overestimated. In the second quarter, Netflix earned “only” 5.2 million customers, a million less than originally planned. The platform totals 130 million subscribers.
“We had a strong second quarter but not excellent, “the company said in a statement. In the United States, the growth in the number of subscribers is 70,000 people against 1.2 million expected. Internationally, Netflix gained 4.47 million customers against 5 million expected.
On the financial side, sales for the second quarter were $ 3.9 billion, up 40.3% year-on-year. Earnings per share are $ 0.85, above the $ 0.79 expected by Wall Street.
The streaming service has reported a slower than expected increase in the number of subscribers in the second quarter. The stock has lost 14% of its value.