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Netflix Takes a Hit on Lower Than Expected Growth

Category: General News
Posted: 04:42PM

Netflix reported quarterly earnings after the market closed yesterday and the outcome was not the best news for investors. The company added 1.54 million subscribers, falling far short of its projection of 2.5 million. The numbers miss led to a 14% drop in stock price in after-hours trading. Netflix believes that it hit its target for new signups but lost too many subscribers due to the "completion of two years of grandfathering" which some members may have misinterpreted as a price increase. Netflix is confident that it can weather the storm caused by the last stages of grandfathering as it will allow the company to continue to invest in new content. It continues to put out well received original content and I will gladly pay the modest increase to keep that momentum going.

Source: The Verge

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