Netflix stock drops more than 10% as earnings show huge decline in new subscribers

Marketwatch ^

[Red in Blue PA]

Netflix Inc. shares plunged more than 10% in the extended session Wednesday after the video-streaming giant badly missed projections for new paid subscriptions.

Netflix NFLX, -12.40% reported the addition of just 2.7 million paid subscribers globally in the second quarter, far short of what Wall Street and the company expected. Analysts were looking for global paid streaming subscriber additions of 5.3 million, according to FactSet, on domestic additions of 350,000 and 4.8 million internationally. Netflix had projected 5 million new customers.

[Red in Blue PA]

We canceled our subscription once they gave the obamas $50 Million.

I do not do business with terrorist enablers. Screw Netflix.

[SERKIT]

That is the Obama-ValJar-Rice golden touch. Their involvement is tanking the company.

[rfp1234]

Roseanne must be ROTFL over this.

[EinNYC]

I also cancelled my subscription about 30 seconds after I heard they hired the Odungos. When I called Netflix to cancel, the young man answering the phone told me “they were getting a lot of cancellations due to O___.”

[JonPreston]

Netflix = Obama, leftist swill and super women who routinely toss 200 lb men around like cardboard boxes. And how about the clods, who when holding a gun, NEVER PUT THEIR FINGER ON THE TRIGGER! Please, WTF is that about??

[IronJack]

They’re following the GetWoke/GoBroke business plan.

[ImJustAnotherOkie]

Actually Obama is not the reason the stock is tanking.

It’s tanking because they have no future. Probably 4 or 5 years they’ll be just doing DVD’s again.

All the major film and TV companies have consolidated to such a degree that Netflix will not be getting any new movies and shows.

WatchTCM, AT&T, Disney ect. are now streaming or will be streaming soon. Those guys own everything, so why should they give content to NetFlix?

[PROCON]

What’s Netflix?

[Zhang Fei]

It’s not political. The issue is that Netflix’s original productions are not getting the audience numbers of HBO and network TV productions. Its productions on the cheap, combined with its kiboshing of series after 2 seasons, despite good audience numbers, because it doesn’t want to pony up big for contract renewals (given that its commercial-free nature means it can’t exactly mark up its ad rates to cover the cost), means that the best ideas will be shopped to the networks and HBO before ending up with Netflix.

Note that this is *before* AT&T comes up with its HBO offering and Disney does its Disney on demand all-you-can-watch channel for a similar monthly bill. Netflix won’t go away, but its leeway for raising prices is history and the likelihood of a mass migration when AT&T and Disney come online with their competitive offerings is very high.

I would not be surprised if Netflix went into reverse and actually lost 1/3 or more of its viewer base. That’s not a good story for a stock that is valued at 2/3 of Disney’s or AT&T’s market cap.

[glorgau]

Ahhhh..... I can feel the schadenfreude run though me!

[Steve Van Doorn]

yeap, I say a good investment might be Roku now.

[E. Pluribus Unum]

They need to launder more bribe money to the Obolas.

[Mercat]

No Netflix, yay Roku

[Mercat]

No Netflix, yay Roku

[Zhang Fei]

[Those guys own everything, so why should they give content to NetFlix?]

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They were renting content for a really high price to Netflix. It paid $100m per year for the complete Friends series. This is money that went straight to AT&T gross profit number, minus perhaps a few tens of thousands of dollars in terms of transaction costs for sending the media files over, and the cost of hiring lawyers to work up the deal. I doubt AT&T will make that kind of money from its Netflix competitor offering. The issue is that no one knows how all this will shake out, and both AT&T and Disney want to make sure that Netflix does not end up being the Ma Bell of streaming, a monopolist that dictates prices and sets the terms of their relationship. That’s why they’re competing with Netflix.

[plain talk]

Morningstar’s April analysis says their stock is 174% overvalued. 318 was last close and 135 is fair value. A 10% drop is nothing compared to the downside potential of this stock.

[neverevergiveup]

I didn't know about the Obamas’ involvement with Netflix. It might be interesting to compare the movies included in Netflix with those included in Hulu or Roku (i.e. looking for political/ideological bias).

[GOP Poet]

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[DAC21]

“That is the Obama-ValJar-Rice golden touch. Their involvement is tanking the company”

That and a lot of streaming competition is coming on board in the next year or so. NETFLIX are losing big revenue generating TV series Friends and The Office to the competition that owns the rights. Actually the consumer will lose out as to watch what you are seeing now will be fragmented to twice as many paid streaming services.

[GOP Poet]

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