Netflix stock falls after subscriber growth, earnings forecast miss. But it's bouncing back on ad plans, shared-password crackdown in U.S.

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Netflix reported quarterly net earnings of $1.31 billion, or $2.88 a share, compared with $3.53 a share in the year-ago quarter. $NFLX plunged after hours, after the company posted weaker subscriber growth and forecast smaller profit than expected:

Netflix Inc.’s stock initially plunged in after-hours trading Tuesday, after the streaming giant posted weaker subscriber growth and forecast a smaller profit than Wall Street expected. But shares later recovered on company disclosures that its new ad-supported service is a success and its crackdown on shared accounts in the U.S. is coming this quarter.

For the second quarter, Netflix executives guided for earnings of $2.84 a share on $8.24 billion in revenue, while analysts on average were expecting earnings of $3.07 a share on sales of $8.18 billion. Netflix no longer provides guidance on subscriber additions, a sign its years of rapid growth are clearly cooling.

At the same time, they disclosed a password crackdown in the U.S. will occur in the second quarter, a bit later from previous expectations. Netflix’s rollout of the ad-supported tier could also have a temporary impact on margins: Netflix reported an operating margin of 21%, compared with about 25% in the year-ago quarter.

 

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They said that 3 months ago.

It’s down 0.6%.

It was a funny example when some time ago was a company in US that was providing a service for bowling machines installation and it had gone for shares market and it was thriving until all bowlings finished. There's always an end.

hoteliercrypto

Too high n CAN'T share passwords 😭😭😭 oh well.

this is the correct take

20% earnings decline and 3.7% sales growth Is that bullish lol 😆 😂 $nflx

No password sharing and it’s still horrible number

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