Netflix stocks fall after mixed earnings
The company provided weaker-than-expected guidance for the third quarter
Stocks impacted: Netflix (NFLX)
The streaming giant reported relatively upbeat second quarter earnings amid the coronavirus pandemic. On the positive side, the company reported a massive surge in users as people stayed home due to the pandemic – it had added 10.09 million more paid subscribers. However, Netflix earnings missed analyst expectations. The firm also provided weaker-than-expected guidance for the third quarter. Netflix expects 2.5 million net subscriber additions for Q3, compared to analyst expectations of 5.27 million. Apart from the COVID-19 pandemic, the company cited other reasons for the slower growth, including continued competition from Amazon and Apple, as well as competition from TikTok. Following the report, the firm’s stocks fell 9% after hours.
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