Netflix's Latest Earnings Report Reveals a Big Problem in a Major Market
Investors tuned out of Netflix (NASDAQ: NFLX) stock on Jan. 21 after the company's Q4 2021 subscriber growth and guidance for the current quarter failed to match expectations.
Shares of the streaming giant crashed nearly 22% after the report as it became clear that the pandemic-driven push that drove impressive subscriber growth in the past couple of years is all but over. Netflix added 8.3 million paid subscribers during the quarter, missing its forecast of 8.5 million paid additions. The guidance added to the gloom, as Netflix expects to add just 2.5 million paid subscribers this quarter. Wall Street had estimated 5.8 million paid net subscriber additions.
The Q1 forecast represents a meaningful slowdown over the year-ago period's net addition of 4 million subscribers. One of the reasons why that's the case is because of Netflix's failure to step on the gas in key markets such as India.
Source Fool.com
