Netflix Always Gets the Last Laugh
Netflix (NASDAQ: NFLX) had a lot to prove on Tuesday afternoon, and judging by the market's initial reaction it flunked with flying sell orders. Shares of the company behind the the world's leading premium video service were trading nearly 10% lower in Tuesday's after-hours trading.
Netflix didn't have a problem landing comfortably ahead of the revenue and net income goalposts it set up in January. The first of the two stumbles was that it fell short of its subscriber guidance. Netflix tacked on nearly 4 million paying streaming accounts worldwide to its membership base during the quarter, but the 207.6 million global users was 2 million less than it was forecasting three months earlier.
The second stumble -- and this is even worse -- is that it only expects to close out the new quarter with just a million net subscriber additions. Put another way, Netflix expected to have 209.7 million streaming subs by the end of March. Now it won't even get there by the end of June. This isn't pretty, and one can rightfully argue that the sell-off is warranted. It may be a good time to look back at some of the other times that Netflix has fallen down. It has always gotten back up even stronger than before.
Source Fool.com
