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.

Amir of Qatar & President of France talk during World Cup Final
Still, at least Putin and Federation Internationale de Football Association didn't get things all their own way. After the match, Macron headed down to the field to individually congratulate all of the players.

Florida beach reopens after 2 reported shark attacks
Double red flags were flying on the beach, which was closed to the public for the rest of the day as a precaution. Shark sightings in Florida are regular and there were 32 reported attacks in 2016.

Princess Kate, Duchess Meghan attend Wimbledon to watch Serena Williams match
The 73-year-old claims he is ready to travel from Mexico to London after nearly two months without contact, The Sun reports . She added: '[Meghan's] rather naughty smile and her hand-to-mouth whispering pose suggested shared fun and close exchanges'.

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