Netflix shares took a 14% hit yesterday as the firm announced just 5.2 million new subscribers for the 2nd Quarter against the projected 6.2 million. Stocks closed at around $400 but then dropped to around $350 as the quarterly results were published and digested. In the same quarter last year Netflix gained 5.2 million new subscribers as well.
While this may sound like doom and gloom, it is worth noting share prices have almost tripled since the start of 2017 and almost doubled since the start of 2018. While in the US they only added 670,000 new subscribers in Q2 (vs 1 million in Q2 2017), internationally a total of 4.5 million (an 8% increase on Q2 2017). Quarterly revenue was up 40% from Q2 2017 and their profits of $384.3m are six times those from the same period last year.