Netflix stock fell more than 20% in after-hours trading on Tuesday after the streaming giant said it lost 200,000 subscribers in the first quarter — its first subscriber loss in a decade. It also missed investor expectations for revenue.
why does it matter: Netflix stock has already fallen more than 40% since the beginning of the year, due in large part to increased competition and slowing user growth expectations from Netflix for the first quarter.
details: Netflix said in the opening line of Note to contributorsIt blamed its “relatively high household prevalence” for creating “headwinds for revenue growth”.
in numbers, Per CNBC:
- EPS: $3.53 versus $2.89, according to a Refinitiv poll of analysts.
- Revenues: $7.78 billion compared to $7.93 billion, according to a Refinitiv poll of analysts.
The Big Picture: In March, Netflix began testing a crackdown on password sharing as a way to boost subscriptions.
- The company said Tuesday that in addition to 222 million paying families, it estimates that Netflix is being shared with more than 100 million additional families who don’t pay for the service, including more than 30 million in the United States and Canada — the most lucrative market.
go deeper… Netflix earnings over the past year:
“Hipster-friendly troublemaker. Communicator. Organizer. Devoted web lover. Unapologetic problem solver. Reader. Explorer. Travel guru.”
Dow Jones Futures: Market Heads For Fed Decision; GME Skyrockets Late, First Republic Crash
Former Silicon Valley Bank Owner, FDIC Prepares to Fight Over $2 Billion
An army of lobbyists helped loosen banking regulations