Netflix Is Down but Not Out After a Disappointing Q4 Earnings Report

Netflix (NASDAQ: NFLX) shareholders can at least be thankful that the rout the stock suffered Friday morning after it released its fourth-quarter earnings report didn't get any worse. At the close of trading, the streamer's shares were down by 21.8%, a slight improvement over the 25% plunge they suffered at the opening of the session.

Yet there's not much reason to believe the share price will bounce back by much more than that in the weeks to come. Not only did Netflix fall short of expectations on new subscriber additions, but management forecast the company won't be adding many more in the first quarter either.

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Source Fool.com