Netflix Shares Tumble After Sales and Forecast Come Up Short

Bloomberg2023-07-20

Net addition of 5.89 million customers almost triple estimatesHollywood strikes will lower costs by $1.5 billion this yearNetflix Inc. forecast third-quarter revenue that fell short of Wall Street ...

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Comments

Guavaxf30
2023-07-20
Guavaxf30
Gosh. What a spectacular fall.
- Guavaxf30:
  This is a perfect demonstration of how the market can over-price over-expectations. And when the actual results are not as hoped, the avanlange happens.
SudTradepro
2023-07-20
SudTradepro
overly hyped valued stocksand greed starting to bite NASDAQ stocks. 10-15% correction soon. If worse, market crash inevitable
Andrewinho
2023-07-20
Andrewinho
Opportunity is here!! 👏👏👏

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That was due in part to foreign exchange rates and to price cuts in some markets.The company’s forecast for third-quarter revenue of $8.52 billion was also shy of Wall Street estimates, which average $8.67 billion. The company said revenue from advertising and add-on memberships to people who share passwords were not material enough to offset other factors, such as a lack of price increases.“While we’ve made steady progress this year, we have more work to do to reaccelerate our growth,” the company said.The shortfall overshadowed a solid quarter of subscriber growth. Netflix added 5.89 million customers in the second period, more than doubling Wall Street estimates after cracking down on people who share their passwords.The results marked the company’s best second quarter since the depths of the pandemic three years ago and far surpassed Wall Street forecasts of 2.07 million new subscribers. Management expects similar growth this period.Earlier Wednesday, Netflix eliminated its lowest-priced ad-free plan, pushing consumers toward a lower-priced, ad-backed service or a costlier commercial-free plan.In May, the streaming leader started charging people in more than 100 countries to continue sharing their passwords, a key part of its plan to accelerate growth after a sluggish 2022. Viewers using someone else’s subscription can now either pay to keep sharing or set up their own account.The plan has been controversial with users, and analysts weren’t sure how it would impact the company’s growth. Netflix had warned that it would see an uptick in cancellations at the start of the crackdown and that it would see more growth in the back half of this year.But in recent weeks, third-party data indicated that Netflix was seeing a surge in customers.The company said new sign-ups are already exceeding cancellations and that sales growth will accelerate in the months ahead, with third-quarter growth projected at 7.5%.Netflix finished the quarter with 238.4 million members, up 8% from a year ago.While analysts have raised concerns about losses from streaming at many of Netflix’s competitors, including Walt Disney Co. and Warner Bros. Discovery Inc., Netflix is delivering higher profit quarter after quarter. Second-quarter earnings, at $3.29 a share, beat the $2.85 a share average of analyst estimates.“While streaming is intensely competitive, we’ve shown that with strong execution and focus, it can be a great business,” the company said in a letter to shareholders.The company raised its 2023 forecast for free cash flow to $5 billion, from at least $3.5 billion previously, as a result of a strike by writers and actors, which has shuttered production and cut spending.The password crackdown will provide a temporary boost in subscribers. Netflix had long said it didn’t care if people used someone else’s account. But that was when it was adding more than 25 million customers a year. Netflix lost customers in the first half of 2022, prompting a steep drop in the shares and leading to a selloff in other media stocks.","kind":"news","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":199774895685824,"gmtCreate":1689814752852,"gmtModify":1689814756854,"author":{"id":"3576140222331577","authorId":"3576140222331577","name":"Guavaxf30","avatar":"https://static.tigerbbs.com/1ff15ff6aa254c9130f9af922f7e2447","vip":1,"crmLevel":9,"crmLevelSwitch":1,"idStr":"3576140222331577","authorIdStr":"3576140222331577"},"htmlText":"Gosh. What a spectacular fall.&nbsp;","listText":"Gosh. What a spectacular fall.&nbsp;","text":"Gosh. What a spectacular fall.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/199774895685824","repostId":1183173266,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":106484497,"gmtCreate":1689817442720,"gmtModify":1689817455050,"authorId":3576140222331577,"author":{"id":3576140222331577,"idStr":"3576140222331577","authorId":3576140222331577,"name":"Guavaxf30","avatar":"https://static.tigerbbs.com/1ff15ff6aa254c9130f9af922f7e2447","vip":1,"currentWearingBadge":{"badgeId":"a83d7582f45846ffbccbce770ce65d84-1","templateUuid":"a83d7582f45846ffbccbce770ce65d84","name":"Real Trader","description":"Completed a transaction","bigImgUrl":"https://static.tigerbbs.com/2e08a1cc2087a1de93402c2c290fa65b","smallImgUrl":"https://static.tigerbbs.com/4504a6397ce1137932d56e5f4ce27166","grayImgUrl":"https://static.tigerbbs.com/4b22c79415b4cd6e3d8ebc4a0fa32604","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":9,"crmLevelSwitch":1,"individualDisplayBadges":[{"badgeId":"9427a906234c4b18a82ec3d7730b7fa8-1","templateUuid":"9427a906234c4b18a82ec3d7730b7fa8","name":"Star Contributor","description":"Have published 3 or more picked posts, and have published at least one picked post and participated in comments within 30 days","bigImgUrl":"https://community-static.tradeup.com/news/1866dcf97a73be1c330f85862546aedc","smallImgUrl":"https://community-static.tradeup.com/news/4f5c5fa8e2c7683bb5a7fce8753ee456","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/activity/market/2023/star-contributors/","hasAllocated":1,"isWearing":0,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.12.23","individualDisplayEnabled":1,"backgroundColor":{"dark":"#675a37","tint":"#f9ebc2"},"fontColor":{"dark":"#ffffff","tint":"#ab7a0e"},"individualDisplaySort":0,"categoryType":2007}]},"repliedAuthorId":0,"objectId":199774895685824,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">This is a perfect demonstration of how the market can over-price over-expectations. And when the actual results are not as hoped, the avanlange happens.</span>","text":"<span class=\"s1\">This is a perfect demonstration of how the market can over-price over-expectations. And when the actual results are not as hoped, the avanlange happens.</span>","html":"<span class=\"s1\">This is a perfect demonstration of how the market can over-price over-expectations. And when the actual results are not as hoped, the avanlange happens.</span>"}],"langContent":"EN"},{"id":199755922030784,"gmtCreate":1689810120612,"gmtModify":1689810126105,"author":{"id":"3574923825314211","authorId":"3574923825314211","name":"SudTradepro","avatar":"https://community-static.tradeup.com/news/9e0fa136da88290ea3b9970d5c2d6551","vip":1,"crmLevel":8,"crmLevelSwitch":1,"idStr":"3574923825314211","authorIdStr":"3574923825314211"},"htmlText":"&nbsp;overly hyped valued stocksand&nbsp;&nbsp;greed starting to bite NASDAQ stocks. 10-15% correction soon. If worse, market crash inevitable","listText":"&nbsp;overly hyped valued stocksand&nbsp;&nbsp;greed starting to bite NASDAQ stocks. 10-15% correction soon. If worse, market crash inevitable","text":"overly hyped valued stocksand greed starting to bite NASDAQ stocks. 10-15% correction soon. If worse, market crash inevitable","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":8,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/199755922030784","repostId":1183173266,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":199740142076016,"gmtCreate":1689806487901,"gmtModify":1689806491485,"author":{"id":"3581563418944392","authorId":"3581563418944392","name":"Andrewinho","avatar":"https://static.tigerbbs.com/3127e2bc40ab23064a5187a00a63e19b","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3581563418944392","authorIdStr":"3581563418944392"},"htmlText":"Opportunity is here!! 👏👏👏","listText":"Opportunity is here!! 👏👏👏","text":"Opportunity is here!! 👏👏👏","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":9,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/199740142076016","repostId":1183173266,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":28,"commentSize":3,"repostSize":1,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1183173266"}