NFLX reported their Q2 earnings in afterhours on Monday, and investors did not take kindly to the report, sending the stock down 20% in afterhours trading. The stock, which closed at $23.76 in the regular session, is currently trading at $19.09 in the afterhours session. Investors were alarmed at the amount that NFLX had to spend to attract new clients, and are also alarmed at the churn rate of NFLX subscribers, which can only be attributed to heightened competition, especially from BBI. Revs also came in slightly lower than expected in Q2. Increased marketing costs per clients and higher cancellation rates can be expected to pressure earnings growth in the quarters ahead.
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