Netflix have announced their first quarter results this evening and they have beaten market expectations on earnings per share basis – $3.75 vs. $2.98 expected and $1.57 Y/Y
Unfortunately, net paid subscribers missed estimates by almost fifty percent which has made investors worried about the future growth of the company as the world beings to ease out of lockdown. +3.98 million vs. +6.29 million expected vs. +15.77 million Y/Y
NETFLIX also agree to a $5b buyback scheme that will allow them to purchase shares in the open market over the next few years.
The stock as a result of this news has fallen by more than 10%. Although as one investor online pointed out, it’s not unusual for NETFLIX to miss their subscriber numbers but to go on and continue to become even more profitable in future quarters.