Online Broadband Guide
Online Broadband Guide


Netflix shares tumble as subscriber growth misses mark

Netflix shares tumble as subscriber growth misses mark

The slowdown, which saw Netflix shares fall more than 14 percent, has been blamed on the lack of new top-tier shows in the second quarter.

Netflix missed its subscriber growth targets by about a million subscribers in the three months ending in June, sparking concern among investors that there might be a saturation limit for the streaming platform.

Netflix reported lower than expected subscriber growth for the first time in five quarters.

"The quarter is a reminder that Netflix's cadence of net adds is not linear, but lumpy in nature", said Justin Patterson, an analyst with Raymond James and Associates in San Francisco, while pointing to the absence of a new hit series as a driver.

The company's shares fell more than 13 percent shortly after the start of trading on Tuesday before rebounding, with the stock trading down almost 6 percent as of 2:40 p.m.

Looking ahead to the third quarter, the company is calling for $0.68 in EPS on $3.99 billion in revenue. The company said that it had $0.85 in earnings per share (EPS) on $3.91 billion in revenue, compared with consensus estimates from Thomson Reuters that called for $0.79 in EPS on $3.94 billion in revenue.

According to The Associated Press, "The company gained 5.1 million subscribers worldwide during the quarter, more than 1 million below the number that management had believed it could".

"In uber growth stories, especially in technology, from Apple to Amazon to Netflix, you're going to run into these one- or two-quarter issues when they're white-knuckle periods in the very near-term", he said.

In a letter to shareholders, Netflix acknowledged the miss: "We had a strong but not stellar Q2", the statement said.

Netflix's stock price continued to slide, a sign investors are anxious the video-streaming service's faltering subscriber growth could augur a broader slowdown.

Still, Netflix ended Q2 with 130.1 million global subs, up 25% year over year, with 56 million in the US and 72.8 million elsewhere.

Netflix's subscriber numbers are seen as a bellwether of its fortunes. It also fell short on total revenue.

Walt Disney is hoping to close on a deal to buy prized entertainment franchises from 21st Century Fox to feed into a video streaming service Disney will debut next year. "Our strategy is to simply keep improving, as we've been doing every year", the company said.

follow

loading...

editors' picks

July 17, 2018
Las Vegas Hotel Sues Victims of 2017 Mass Shooting
The hotel company says this should protect MGM from liability as well. "It's just really sad that they would stoop to this level". The FBI and the Las Vegas Metropolitan Police Department have not determined Paddock's motive and are still investigating.

July 16, 2018
Kate Upton Is Pregnant with Her First Child!
Model and actress Kate Upton just shared the most casually adorable pregnancy news on her Instagram account Saturday morning. Justin helped lead the Houston Astros to a World Series victory past year , and Kate was behind home plate to cheer him on.

July 15, 2018
An honour: First Lady Melania gushes over afternoon tea with Queen
An enormous blimp depicting Donald Trump as a baby throwing a temper tantrum set sail over London on Friday morning. He also said he told May "how to do it", but that she "didn't listen" and "wanted to go a different route".

July 14, 2018
Russian Federation hails 'partner' Trump ahead of summit
Interviewed on Yle, he underlined that Finland is "part of the European Union and has also made its security policy choices". McCain wasn't the only Republican senator to criticize Putin following the indictments .

July 13, 2018
'We left everything out there', says England manager Southgate
He relates to us massively. "Nothing he is going to say is going to make us feel any better", Kane said. And Walker insists that there is more than just professional pride at stake.

July 12, 2018
Andrew Cuomo threatens to sue Supreme Court over Roe v. Wade
But the ruling did not come in time for the real Roe to terminate her pregnancy. "So there is a lot to go through", she said . Lois Frankel, D-Fla., brought a hanger to pen and pad talking about Kavanaugh's nomination to Supreme Court .

July 11, 2018
Harry Wilson happy to bide his time at Liverpool
Fabinho and Naby Keita were both handed debuts as Liverpool started pre-season with a routine 7-0 win over Chester on Saturday. We can't make a story after each mistake, let's carry on and make the best of the situation and learn from it.

July 11, 2018
John Aldridge Lays Into 'Cheat' Neymar Following World Cup Exit
Brazil won the last of its five World Cup titles in 2002 with a team led by Ronaldo, Rivaldo and Ronaldinho. But they're out, leaving the unusual quartet of France, Belgium , Croatia and England.

July 08, 2018
It's war: China, US trade blows through tariffs
ET on $34 billion United States worth of Chinese imports, a first step in what could become an accelerating series of tariffs . He added the U.S. is ready to target an additional $200 billion, and then $300 billion more should Beijing retaliate .

July 03, 2018
Susan Collins Won't Support Anti-Roe v. Wade Nominee
In March 2017, Collins endorsed Trump's first Supreme Court nominee , Neil Gorsuch, who replaced the late Justice Antonin Scalia . The president told reporters Friday that his choice will likely be made from a previously released list of 25 potential nominees.