Netflix shares tank after big miss

“Netflix Inc’s subscriber growth and forecast fell short of Wall Street expectations, sending shares of the normally high-flying stock crashing 14 percent on Monday,” Lisa Richwine and Vibhuti Sharma report for Reuters. “The company’s total monthly customers reached 130 million worldwide, 1 million fewer than forecasts from Thomson Reuters I/B/E/S, as it added new programming including Lost in Space and new episodes of Marvel’s Jessica Jones and 13 Reasons Why.”

“Netflix said it had ‘over-forecasted’ quarterly fluctuations in the pace of new customers,” Richwine and Sharma report. “Before the earnings report, Netflix shares had doubled in 2018, far outpacing the 3.7 percent gain for the S&P 500 index. In after-hours trading on Monday, Netflix shares sunk 14 percent to $343.60, down from an earlier close of $400.48.”

“‘Investors are devastated by Netflix’s Q2 projection that went down in dramatic flames. Now future projections are suspect and that decimates valuation,’ said Eric Schiffer, chief executive officer of private equity firm Patriarch,” Richwine and Sharma report. “Netflix added 670,000 subscribers in the United States, well below analysts’ estimates of 1.19 million, according to Thomson Reuters I/B/E/S. Netflix signed up 4.47 million subscribers internationally, while analysts were expecting 4.97 million.”

For the current quarter, Netflix projected it would add 5 million customers. It is making a big push in India. Earlier this month, it debuted its first Indian original series, Sacred Games, part of a slate of new shows aimed at the vast Bollywood entertainment market,” Richwine and Sharma report. “But it also faces growing competition.

Read more in the full article here.

MacDailyNews Take: Don’t look now, Netflix, but, very soon, here comes Apple!

Apple reportedly considering subscription bundle of Apple Music, News and original video content – June 28, 2018
Apple is building a media platform like we’ve never seen before – June 27, 2018
Here’s how much Apple could make from streaming – June 27, 2018
Apple’s next $10 billion frontier is content creation – June 25, 2018
Apple intends to beat Netflix on price with standalone subscription to original content – June 19, 2018
Apple announces multi-year partnership with Oprah Winfrey – June 15, 2018
Apple inks content deal with Oprah Winfrey – June 15, 2018
Apple’s original content is further along than you think with 16 new shows in the works – June 15, 2018
Apple is close to a deal for an animated feature film – June 14, 2018
Breaking Bad’s Aaron Paul join Apple’s upcoming drama ‘Are You Sleeping?’ – June 14, 2018
Apple nabs creative development executive Layne Eskridge from Netflix – June 12, 2018
Apple hires Broadway Video’s Kelly Costello as business affairs executive – June 12, 2018
‘Master’s of Sex’ star Lizzy Caplan joins cast of upcoming Apple series ‘Are You Sleeping’ – June 7, 2018
Apple TV: The underestimated story – June 5, 2018
‘Once Upon a Time’ co-creators sign on as showrunners for Steven Spielberg ‘Amazing Stories’ reboot for Apple – May 22, 2018
Apple inks deal for Isaac Asimov ‘Foundation’ TV series – April 10, 2018
Apple aiming original TV series launches for spring or summer 2019 – March 26, 2018
Is this Apple’s plan for Apple TV? – March 22, 2018
Apple orders animated comedy ‘Central Park’ from ‘Bob’s Burgers’ creator Loren Bouchard – March 12, 2018
Apple hires Carol Trussell as Head Of Production for Worldwide Video Programming division – February 22, 2018
Apple loses bidding war over J.J. Abrams sci-fi drama ‘Demimonde’ to HBO – February 2, 2018
Apple and HBO in bidding war for J.J. Abrams sci-fi drama series – January 17, 2018
Apple’s TV tactics: Can Cupertino figure out the television formula? – January 16, 2018
Apple orders ‘See’ series, a futuristic drama from ‘Hunger Games’ director – January 10, 2018
Life after iTunes: Apple’s big media challenge – January 9, 2018
Apple developing new original drama ‘Are You Sleeping’ starring Octavia Spencer – January 3, 2018
Three more Amazon Studios executives move to Apple – December 26, 2017
Apple orders space drama series from ‘Battlestar Galactica’ producer Ronald D. Moore – December 15, 2017
Apple gives Jennifer Aniston-Reese Witherspoon series a 2-season order, confirms Spielberg’s ‘Amazing Stories’ reboot – November 9, 2017
Apple outbids Netflix for show starring Jennifer Aniston and Reese Witherspoon – November 8, 2017
Apple eyes iconic studio as base for Hollywood production push; vying with Netflix for high-profile Jennifer Aniston drama – September 1, 2017
The magic and misdirection of Apple’s streaming strategy – August 18, 2017
Apple wants to spend $1 billion on 10 original TV shows over the next year – August 16, 2017
Former WGN America president Matt Cherniss joins Apple in latest TV push – August 15, 2017
Rivals leaving Apple behind as Apple TV remains stuck in a test pattern – August 8, 2017
Apple’s so-called TV ‘strategy’ continues to be an embarrassing joke – June 30, 2017
Apple poaches Sony TV executives to lead major push into original content – June 16, 2017


  1. I just love that Wall St. gamblers are devastated by the very market forces that they created which is a rare loss for the 1% wannabes. The Capitalists lost wealth fair and square, the sleazy way. Color me happy. As you know, the markets are being misused by the idle rich.

    I have no animosity toward Netflix as a service company. It seems to be an upstanding enterprise.

    1. Dingler, you are assuming that the 1% investors failed to hedge their investments and/or withdraw money from Netflix before the big drop. Corporations and wealthy people have access to news – effectively insider information – before us regular peon investors. They often get out early leaving the rest of us with the big loss. Furthermore, they have the capital to hedge their investments to protect their downside – put options, for instance. You do not need to fear for the 1% – the investment industry and tax laws favor them greatly.

      1. Yes, I understand that the 1% know how to profit from ups as well as downs, that they know when to fold because they can take advantage of their connections, leaving 1% wannabes holding the bag which means those who lost on that drop. But I am also addressing the bad morality of making money off of money even though it’s ethically correct in Capitalism.

    1. It reminds me of treatment AAPL gets sometimes. Almost all umbers were climbing except they missed their own forecast.
      It’s Wallstreet, but hardly a negative tell-tale sign, imo.

  2. I cancelled when they sharply reduced the selection of movies.

    They keep sending me offers for a free month, but their original programming was never the reason I joined.

  3. I think Netflix maybe finding out that you cannot play politics these days… you cannot keep making shows that use personalities that really aren’t funny or hire politicians for big $$ to do shows that won’t be entertainment.

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