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Netflix stock fell around 5% after-hours on Tuesday after the company posted slower growth in new subscriptions and below-expectations earnings (Shutterstock via CNN)
Netflix stock fell about 5% after-hours on Tuesday after the company posted slower growth in new subscriptions and below-expectations earnings, a sign that the streaming giant’s pandemic crisis could end. breathless
The company said it added 22 million net subscriptions in the three months ended September 30, up from 68 million new memberships in the same period of the previous year The additions bring the total number of subscribers to Netflix at nearly 1952 million, lower than the 1962 million Wall Street analysts had projected
Netflix posted revenue of $ 1.74 per diluted share on $ 6.4 billion in revenue Analysts had forecast earnings of $ 2.13 per share on revenue of $ 6.38 billion, according to Refinitiv
Netflix thrived in 2020 as people stuck in their homes during the global health crisis The company has seen colossal subscriber gains over the past two quarters, which has helped push its stock up nearly 70% this year But we wondered if he could continue this momentum, especially as competition from other streaming providers intensified.
The company attributed the slowdown in growth in the third quarter to its « record first half results », suggesting that due to the number of new customers subscribed in the first months of the year, fewer were left for. Q3 Netflix initially expected to add 25 million new paid subscriptions in the quarter
However, he noted that he added 281 million paid subscriptions in the first nine months of 2020 – more than the total number of new paid subscriptions in 2019 Netflix also said that « retention remains healthy and engagement. per member household increased sharply from year to year « during the quarter
Netflix plans to add 6 million more new paid subscriptions in the last three months of this year, lower than its net additions in the fourth quarter of 2019.But that would bring the total number of new members for the year to 34 million, still well above the previous annual high of 286 million in 2018 It also expects paid net additions to decline year over year in the first half of 2021, given the massive surge earlier this year
« The state of the pandemic and its impact continue to make projections very uncertain, but as the world recovers in 2021, we would expect our growth to return to levels similar to pre-COVID, » he said. declared the company in a press release
« We continue to view quarterly fluctuations in net additions paid as insignificant in the context of the long-term adoption of internet entertainment, which we believe is still early and should provide us with many years of strong future growth. while we continue to improve our service «
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Netflix Stock
World News – CA – Netflix Stocks Drop After Reporting Slowing Subscriber Growth
