Netflix Stock Tumbles After US Subscribers Drop For the First Time Ever

[DEAD7]

Netflix Stock Tumbles After US Subscribers Drop For the First Time Ever


The slight drop in Netflix's U.S. subscriber base, combined with fewer-than expected international adds in the second quarter, sent the company's stock tumbling over 10% in after-hours trading Wednesday. The streaming company still reported better-than-expected earnings, but investors tend to focus on its subscriber trends and not much else. The company said it sees a return to subscriber growth in the third quarter.

For the second quarter, Netflix reported 60 cents in earnings per share, versus the 56 cents analysts had been expecting. Revenue came in at $4.9 billion, about equal to the consensus estimate. That compares with 85 cents in earnings per share on $3.9 billion in sales in the same period last year. Second-quarter net income was $270.7 million. But Netflix's subscriber numbers tend to be the most important metric for investors, and Netflix fell short where it mattered. It added 2.8 million net new international subscribers but lost 126,000 U.S. users in the second quarter. Wall Street had been expecting 352,000 domestic and 4.8 million international adds, and Netflix had guided to a total of 5.0 million new subscribers.

 

[Starman]

I'm on someone else's account with three other people. I would think that'd be a problem.

 

[LurkMoar]

Buy the dip?

 

[StatUS]

Pirating back up too.

 

[rapbeats]

well this was going to happen when all the big companies netflix was using to blow up on. all that content is slowly but surely going to those companies own streaming services. you wont lose everyone but you will lose some people.

The truth is, unless you're rich and got money to burn no one is going to subscribe to ALL of those new services either. you might choose a couple and call it a day. Which is why you now see netflix trying to create so much of its own content. they figure, hey while we got yall hear. lets see if we can keep you after the big boys take their toys back.

 

[StatUS]

well this was going to happen when all the big companies netflix was using to blow up on. all that content is slowly but surely going to those companies own streaming services. you wont lose everyone but you will lose some people.

The truth is, unless you're rich and got money to burn no one is going to subscribe to ALL of those new services either. you might choose a couple and call it a day. Which is why you now see netflix trying to create so much of its own content. they figure, hey while we got yall hear. lets see if we can keep you after the big boys take their toys back.

The only advantage to these services is that they can be unsubscribed from unlike cable. Use one per month then cancel for another if you need. It was gonna get to this point once the studios realized they could control their content but at least people aren't tied to a 2 year contract.