Netflix shares dive as subscriber growth falls short

Ruben Ruiz
July 17, 2018

Netflix shares plunged in after-hours trading after the streaming giant's subscriber growth fell far short of Wall Street's expectations. Specifically, Netflix is anticipating a net add of 5 million new subscribers for the September quarter, a tad below some analyst projections that saw Netflix bringing 6 million new subscribers on board.

Netflix predicted it will add 5 million subscribers in the current quarter, which ends in September, slightly slower than the pace a year ago.

Subscriber additions: 5.1 million total - 670,000 in the United States and 4.47 million internationally.

Cash burn - something Netflix has been reducing for the past few quarters - also had a noticeable uptick.

Despite the "near-term gut punch", Netflix is still well-positioned for future growth, GBH Insights analyst Daniel Ives wrote in a note.

The company reported quarterly revenue of $3.91 billion and earnings per share of 85 cents.

Watch Two Cape Canaveral Launch Towers Meet Their End
The two pads ended up as the launch site for dozens of Delta rockets over the past many decades. The complex consisted of two launch pads, Pad 17A and Pad 17B.

Demi Moore jokes about marriage to Bruce Willis at comedy roast
Willis' remarks closed out Comedy Central's "Roast of Bruce Willis " and sent waves through the very fabric of the Internet. Bruce, don't be so hard on yourself, you had much bigger failures.

8 endangered black rhinos die in Kenya after relocation
Conservationists in Africa have been working hard to protect the black rhino from poachers targeting the animal for its horn. KWS aims to create a national herd of 830 black rhinos by the end of 2021.

Subscriber additions: 5.2 million total - 1.1 million in the USA and 4.1 million internationally.

The company did roughly meet analyst expectations on earnings, at $3.91 billion compared to estimates of $3.94 billion.

We were honored last week with the most Emmy nominations of any network.

The good news is Netflix did see a 43% increase in streaming revenue likely from the higher subscriber numbers and new price increase.

Going forward, "We anticipate more competition from the combined AT&T/WarnerMedia, from the combined Fox/Disney or Fox/Comcast as well as from worldwide players like Germany's ProSieben and Salto in France", the company said in the investor letter.

Other reports by GizPress

Discuss This Article

FOLLOW OUR NEWSPAPER