Netflix: Is Growth Accelerating or Just Pulled Forward?
Last week, Netflix (NASDAQ: NFLX) reported phenomenal growth in its earnings, free cash flow, and subscriber base for the second quarter of 2020. Clearly, the streaming video pioneer has been able to capitalize on stay-at-home orders and similar measures in the U.S. and abroad. Simply put, bored consumers have turned to Netflix to stay entertained.
Nevertheless, Netflix stock fell after the earnings release, reversing a big rally from the previous week. A weaker-than-expected Q3 forecast appears to have been the main reason for investors' disappointment. Let's take a look at what this means for Netflix stock moving forward.
It didn't take long for the COVID-19 pandemic to deliver tangible benefits for Netflix in 2020. In the first quarter, Netflix grew its global paid streaming subscriber base by 15.77 million households: more than double the 7 million paid net additions it had originally expected.
Source Fool.com
