Netflix shares fall after earnings miss, weak subscriber guidance for third quarter

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The company announced that Netflix Chief Content Officer Ted Sarandos will become co-CEO alongside current CEO Reed Hastings.

"TikTok's growth is astounding, showing the fluidity of internet entertainment," the company wrote to shareholders. "Instead of worrying about all these competitors, we continue to stick to our strategy of trying to improve our service and content every quarter faster than our peers. Our continued strong growth is a testament to this approach and the size of the entertainment market.

Netflix said it's made the most progress resuming production in Asia Pacific and never fully shut down in Korea. It's resumed some production in Europe as well as two stop-motion animation projects in Oregon and two films in California. But the company warned that "current infection trends create more uncertainty for our productions in the US.

The company expects to see a 16% operating margin for the year and 19% for 2021. Hastings described that as "tamping down the expectations."

 

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