Netflix's Pandemic Boost Is Over -- but Here's Why I'm Not Worried
Netflix (NASDAQ: NFLX) reported first-quarter 2021 results last week and disappointed many analysts and investors with its subscriber numbers. After adding an incredible 37 million members last year, the streaming giant only managed to sign up 4 million in the first three months of this year.
This missed estimates by management (6 million) and Wall Street (6.2 million), causing the stock price to fall about 8% since Tuesday's market close. To make matters worse, the company is forecasting just 1 million subscriber additions in the current quarter.
The coronavirus pandemic led to a surge in Netflix's business in 2020, but now investors are concerned that growth going forward will slow as people spend more time away from home and competition in the space heats up.
Source Fool.com
