Netflix news for Thursday about its subscriber count not growing as much as expected has NLFX stock down.
Netflix (NASDAQ:NFLX) reports that its paid subscriber growth for the second quarter of 2019 was 2.7 million. This is less than the 5.5 million in paid subscriber growth that is saw in the second quarter of 2018. It also comes in below NFLX’s own paid subscriber growth estimate of 5 million for the period.
The Netflix news release notes that part of the problem for the poor paid subscriber growth comes from the U.S. The company points out that paid subscriber from this region in the second quarter of the year was basically flat.
Despite the poor paid subscriber growth for the second quarter of 2019, the Netflix news release says that it is still expecting better growth in the third quarter of the year. This has it expecting to add 7 million paid subscribers. The company notes it is already seeing strong growth during the start of the third quarter with the launch of Stranger Things 3.
The poor subscriber growth is helping to drag down NFLX stock today on top of mixed results for the second quarter of 2019. This includes earnings per share and revenue coming in at 60 cents and $4.92 billion. Wall Street was looking for the streaming company to report earnings per share of 60 cents of revenue of $4.93 billion for the quarter.
NFLX stock was down 11% as of noon Thursday, but is up 35% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.