Netflix Stock Jumps as Subscriber Figures Exceed Expectations
Netflix (NASDAQ: NFLX) pleasantly surprised shareholders when it reported better-than-expected subscriber figures after the markets closed on Tuesday. Nevertheless, the streaming pioneer has experienced two consecutive quarters of subscriber losses amid the economic reopening gaining momentum worldwide.
That was to be expected, though. The company thrived at the pandemic's onset, signing millions of new users looking to make the time cooped-up at home tolerable. But at the same time, the streaming landscape was getting more crowded and more competitive. Understandably, Netflix's growth evened out somewhat following the surge. But investors were worried that the slowdown would be worse, so the better-than-expected subscription figures sent Netflix's shares higher this week.
In its most recent quarter, which ended on June 30, Netflix shed 970,000 subscribers. That was better than the 2 million subscribers management thought it would lose. Overall, Netflix boasts 221 million subscribers after losing close to 1.2 million over the previous two quarters combined. Thankfully, it expects the trend to reverse in the third quarter when it estimates it will add 1 million subs.
Source Fool.com
