Netflix stocks plunge after a mixed earnings report
The company expects to add 6 million new subscribers worldwide in the fourth quarter
Stocks impacted: Netflix Inc. (NFLX)
In a sign that the pandemic bump may be waning, the streaming giant posted slowing growth in new subscriptions and lower-than-expected profits. After two consecutive quarters adding more than 10 million customers (which helped drive its stock up nearly 70% this year), the company added 2.2 million net memberships in the third quarter, down from 6.8 million new memberships during the same period in the prior year. The company ended the third quarter with 195.15 million subscribers and expects to add 6 million new subscribers worldwide in the fourth quarter. Netflix reported net earnings of $790 million, or $1.74 a share, compared with net income of $1.47 a share in the year-ago quarter. Meanwhile, revenue improved to $6.44 billion from $5.25 billion a year ago. Following the mixed report, Netflix stocks fell 6% in after-hours trading.
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