Netflix Investors Can't Ignore Slowing Growth Now
Netflix (NASDAQ: NFLX) reported its third-quarter results last week, and on the whole, it posted solid numbers. Revenue matched the company's guidance at $7.48 billion. Meanwhile, earnings per share reached a record $3.19, smashing the company's forecast of $2.55 and the analyst consensus of $2.56.
Even subscriber growth exceeded management's expectations by approximately 880,000 paid net additions. Nevertheless, it remains clear that Netflix's growth is slowing -- and that doesn't leave much long-term upside for Netflix stock.
Netflix grew its paid streaming subscriber base by 4.38 million members last quarter, beating its initial forecast of 3.5 million paid net additions. A year ago, the company reported just 2.2 million paid net additions in the third quarter, due to the COVID-19 pandemic pulling growth forward into the first half of 2020.
Source Fool.com
