Netflix Sees Its Frothy Stock Dip As Revenue Trails New Subscribers: What Wall Street Is Saying
deadline.comWall Street reviews of Netflix’ latest earnings ranged from upbeat to more cautiously optimistic, with the latter taking hold today after a major jump in net new subscribers failed to ignite sales last quarter.
Asked why, co-CEOs Ted Sarandos and Greg Peters and CFO Spencer Neumann said they expect a revenue boost from newly launched paid sharing, which just started in May, and from the ad-tier that launched last fall, will be gradual and roll out in coming quarters.
But uncertainty on the timing combined with an already frothy share price saw Netflix stock dip after hours Wednesday and lose ground today.
It’s trading down almost 9% at $435. Netflix reported yesterday it added 5.9 million new subscribers for the second quarter ended in June – smashing forecasts.
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