Netflix stock fell more than 20% in after-hours trading on Tuesday after the streaming giant said it lost 200,000 subscribers in the first quarter — its first subscriber loss in a decade. It also missed investor expectations for revenue.
why does it matter: Netflix stock has already fallen more than 40% since the beginning of the year, due in large part to increased competition and slowing user growth expectations from Netflix for the first quarter.
details: Netflix said in the opening line of Note to contributorsIt blamed its “relatively high household prevalence” for creating “headwinds for revenue growth”.
in numbers, Per CNBC:
- EPS: $3.53 versus $2.89, according to a Refinitiv poll of analysts.
- Revenues: $7.78 billion compared to $7.93 billion, according to a Refinitiv poll of analysts.
The Big Picture: In March, Netflix began testing a crackdown on password sharing as a way to boost subscriptions.
- On Tuesday, the company said that in addition to 222 million paying families, it estimates that Netflix is being shared with more than 100 million additional non-paying families, including more than 30 million in the United States and Canada — the most profitable. Market.
go deeper… Netflix earnings over the past year:
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