Netflix Stock Is Down, but Not Out
Mortality is coming down hard on Netflix (NASDAQ: NFLX) these days. The world's leading premium streaming service has now served up back-to-back quarters of disappointing financial results. The stock tumbled 22% last time out. It could be even uglier this time by the time the market closes on Wednesday.
Netflix didn't just miss its subscriber target, which called for 2.5 million net additions through the first three months of the year. The platform closed out the quarter with fewer global streaming subscribers than it had when the period began. Netflix also fell short of its earlier revenue guidance.
Things look bad, and the near term is going to be even worse. Its fresh outlook for the current quarter is short of what analysts were modeling on both ends of the income statement. If investors thought Netflix ending the first quarter with 200,000 fewer subscribers was pretty rough, they're not going to like its new guidance where it's bracing investors to expect 2 million in net defections for the second quarter. There's a cliff. There's a hanger. Let's see how Netflix gets out of this cliffhanger.
Source Fool.com
