Netflix growth misses mark despite strong earnings

Netflix growth misses mark despite strong earnings

Netflix growth misses mark despite strong earnings

Netflix CEO Reed Hastings anticipates the next 100 million subscribers to expand more swiftly than the first 100 million, but he didn't give a particuar schedule during an online video review of the organization's first quarter. Wedbush raised their target price on shares of Netflix from $68.00 to $73.00 and gave the stock an "underperform" rating in a research report on Tuesday. As a result, Netflix is looking at a potential record-setting high with regards to its stocks today. Netflix stock fell by more than 2% on Wednesday, touching as low as $139.77 during regular trading hours. The Internet television network reported $0.40 earnings per share for the quarter, topping analysts' consensus estimates of $0.37 by $0.03. The shares were sold at an average price of $147.39, for a total transaction of $147,390.00.

Netflix, whose original shows include the award-winning British drama "The Crown" and "A Series of Unfortunate Events", added 3.53 million subscribers outside the United States in the quarter ended March 31. Revenue growth continued during the quarter, rising by 38.8% year-on-year to US$2.516 billion.

He goes on to say, "Considering the new seasons of House of Cards and Orange is the New Black are scheduled for release later this quarter as well, we believe guidance could prove conservative". Breaking that total down, the OTT video market leader picked up 1.42 million subscribers in the U.S. and the other 3.53 million customers internationally, raising its totals in those regions to 50.85 million and 47.89 million, respectively.

"The company is likely to continue to experience quarter-to-quarter volatility, as both the pace of subscriber additions and the path to respectable profitability remains hard to determine", wrote Dougherty analyst Steven Frankel in a research note, maintaining his neutral rating. We expect to cross the 100 million member mark this weekend.

Michael Graham, ‎managing director and senior internet analyst at Canaccord Genuity, told CNBC's "Closing Bell" on Monday that he thinks Wall Street is bullish on Netflix's outlook.

The streaming firm had 98.75 million subscribers at the end of the first quarter. Perhaps more surprising, global net additions of 3.53 million also missed guidance of 3.7 million.

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