Netflix Earnings: Stock Tanks on Weak Subscriber Adds

Netflix Earnings: Stock Tanks on Weak Subscriber Adds

In the third quarter, Netflix expects to add 5 million subscribers - 650,000 in the United States and 4.35 million internationally.

"We had a strong but not stellar Q2 (second quarter)", Netflix said in a letter to shareholders. Domestic streaming net additions are projected at 650,000, below the average estimate for 953,000. The reason behind this is that Netflix is now has a free cash flow of negative $559 million meaning they once again spent more in the second quarter of 2018 than they made. Worldwide subscriber net additions are projected at 4.35 million, again, below the average 5.095 million.

Despite the "near-term gut punch", Netflix is still well-positioned for future growth, GBH Insights analyst Daniel Ives wrote in a note.

Membership in the quarter grew 5.2 million to a total of 130m, matching the same period a year ago but a million shy of what Netflix forecast, according to a letter released along with earnings figures. That erased roughly $25 billion from the company's market valuation. All told, Netflix now boasts upwards of 130 million subscribers across the globe.

Heartbroken but proud Croatia fans celebrate their 'heroes'
At the climax of the ceremony, Putin handed an official World Cup ball to Infantino, who then handed it on to the emir. The "hottest president" in the world went back home happy.

Call of Duty: Black Ops 4’s Multiplayer Beta Begins Early Next Month
Those who pre-order on the Xbox or PlayStation stores will automatically be given access to the game on the dates below. The Private Multiplayer Beta will begin on August 3rd and it will be available to PlayStation 4 owners first.

Here's Apple's Lousy Attempt At Fixing the Keyboard on New MacBook Pros
As mentioned, Apple has officially just said that the MacBook Pro keyboard is quieter now, but iFixit believes that's a cover-up. But as it turns out, Apple did, secretly, included somewhat of a fix for that keyboard issue on the new MacBook Pros.

The company's stock had previously surged almost 146% over the last 12 months, driven by strong revenues and consistently higher-than-expected subscriber growth.

In announcing earnings, Netflix also touted its historic 112 nominations for this year's Primetime Emmy Awards, announced last week, stealing HBO's 17-year streak as the top-nominated network or service. For the current quarter ending in October, Netflix said it expects revenue in the range of $3.99 billion.

Netflix cited an array of competitors, starting with YouTube.

Going forward, "We anticipate more competition from the combined AT&T/WarnerMedia, from the combined Fox/Disney or Fox/Comcast as well as from global players like Germany's ProSieben and Salto in France", the company said in the investor letter.

Related Articles

  • Roku's wireless speakers are just for its TVs

    Roku's wireless speakers are just for its TVs

    Created to work exclusively with Roku TVs, the new wireless speakers are meant to address a growing consumer problem. Miss out on the early bird special (which runs through July 23) and the price climbs a bit higher to $179.99.
    The best Amazon Prime Day 2018 deals so far

    The best Amazon Prime Day 2018 deals so far

    Interested in Amazon? Add Amazon as an interest to stay up to date on the latest Amazon news, video, and analysis from ABC News. A $9.99 Fire TV Stick is simply unheard of - surpassing even the best Black Friday deal we've ever seen for Amazon's streamer.
    England’s Harry Kane wins World Cup Golden Boot

    England’s Harry Kane wins World Cup Golden Boot

    He started off the tournament strong, scoring five of his goals in England's first two games against Tunisia and Panama. Lineker won the Golden Boot in the 1986 edition of the World Cup when he too scored six times for the Three Lions.
  • France vs Croatia, ultimate guide, preview, start time, teams

    France vs Croatia, ultimate guide, preview, start time, teams

    We have to leave emotions aside and give more than we've given on the pitch in the previous matches because it's the cup final. Perhaps it's my Chelsea blue showing, but N'golo Kante has been the best player of the tournament from start to finish.
    Meghan Markle, Kate Middleton watch Serena Williams compete in Wimbledon final

    Meghan Markle, Kate Middleton watch Serena Williams compete in Wimbledon final

    As for Kate and Meghan ... what a flawless day out! Kate was at centre court a day earlier with her sister-in-law Meghan Markle . Taking another small break from her maternity leave, Kate wore a breezy white dress with polka-dots by Jenny Packham.
    Donald Trump told Theresa May to sue the European Union  over Brexit

    Donald Trump told Theresa May to sue the European Union over Brexit

    Mr Khan added: "We have a special relationship with the United States of America , it's like having a best friend". He added: "If they don't make the right deal, she might very well do what I suggested".
  • Kylian Mbappe becomes youngest since Pele to score in World Cup final

    Kylian Mbappe becomes youngest since Pele to score in World Cup final

    This match saw a nervy France pick up an unconvincing win as Kylian Mbappe scored the goal of the contest. I am at the service of my players but the match belongs to them.
    Marc Stein: Houston Rockets

    Marc Stein: Houston Rockets "Favored" To Sign Carmelo Anthony

    The Thunder would have to attach multiple assets to Anthony to incentivize a team to take on his $28 million salary. Carmelo Anthony will not be on the Thunder next season, but it's unclear how they will part ways with the forward.
    NATO bends to Trump's will

    NATO bends to Trump's will

    She also defended Germany's contribution to an alliance which Trump says places too much burden on the United States taxpayer. We can't put up with it", he said. "They got rid of their coal plants, they got rid of the nuclear".
  • United States  challenges China, EU and others at WTO over steel tariffs

    United States challenges China, EU and others at WTO over steel tariffs

    Ottawa's response has been $16.6-billion worth of countermeasures on imports of American steel, aluminum and consumer products. The summit was held hours ahead of the one-on-one summit between Trump and Russian President Vladimir Putin in Finland.
    Trump raves about 'beautiful' Queen, makes confusing United Kingdom  comment

    Trump raves about 'beautiful' Queen, makes confusing United Kingdom comment

    Donald Trump has praised the Queen after spending around 50 minutes in a meeting with the monarch at Windsor Castle . When asked whether the monarch liked him, he said: "I don't want to speak for her, but I can tell you I like her".
    Demonstrators rally ahead of Trump's arrival in Finland

    Demonstrators rally ahead of Trump's arrival in Finland

    Trump told reporters on Friday that he had given May advice about how to deal with the European Union that she found too "brutal". CBS News released excerpts on Sunday, hours before Mr Trump was set to fly to Helsinki, where he will meet with Mr Putin.