Netflix Inc.’s stock plunged in after-hours trading Tuesday, after the streaming giant posted weaker subscriber growth and forecast smaller profit than Wall Street expected.
Netflix NFLX on Tuesday reported that subscribers increased by 1.75 million in the first quarter of the year, missing analysts’ average estimate of 2.2 million. Netflix reported fiscal first-quarter net earnings of $1.31 billion, or $2.88 a share, compared with $3.53 a share in the year-ago quarter. Shares plunged lower than $300 in after-hours trading following the release of the results, after closing with a 0.3% increase at $333.70.
Expectations among investors heading into Netflix’s quarterly report were muted. The focus was on Netflix’s switch toward better monetization with an ad-supported service and a rolling crackdown on shared accounts. Analysts in particular were closely watching the performance of Netflix’s new “Basic with Ads” plan and its effectiveness in stanching the defection of subscribers to competing services from Walt Disney Co. DIS and Apple Inc. AAPL .
Netflix is not worth buying at the current stock price . I think it’s worth 280 a share
Quick panic will pass. Too much value still here.
Somehow tired content, rising prices, and crackdown threats aren't popular. Who could have guessed?
They shouldn't have gotten greedy
Yeah, shorting AMC...... HUGE MISTAKE.
Jeez I wonder what could’ve happened?