Netflix 9% After Hours: Dip to Buy or Growth Crack?
Netflix dropped more than 9% after hours even though Q1 revenue rose 16% to $12.25B and EPS came in at $1.23. The problem was forward guidance: Q2 revenue was guided to $12.57B and EPS to $0.78, both below Wall Street expectations. Reuters also reported Reed Hastings is stepping down from the board in June.
So what is the market really pricing here — one soft quarter, or a bigger slowdown in the Netflix story? Is this just a post-earnings shakeout, or the first sign growth is getting harder to defend?