It was a rough fourth quarter for Netflix (NASDAQ: NFLX), and the near-term outlook isn't very encouraging. Shares of the streaming service were hit hard on Thursday afternoon after the company posted fresh financials, down roughly 20% in after-hours trading within an hour of announcing results.
Netflix fell short of the guidance it provided for its most important metrics, and the one area where it proved resilient bears an asterisk. New guidance for its current quarter is also underwhelming, to say the least.
Netflix is still the undeniable top dog in this niche, but it leads one to wonder if the price hike it rolled out for U.S. subscribers over the weekend was a smokescreen or a consolation prize. Let's break down what went wrong at one of the most dynamic consumer-facing companies over the last 20 years.
Source Fool.com