ETFs To Watch As Netflix Drops On Weak Subscriber Outlook

Netflix (NFLX - Free Report), the world's largest video streaming company, disappointed investors with its second-quarter results. While the company beat revenue estimates and reported solid subscriber addition, it missed the earnings estimate and offered weak third-quarter subscriber guidance.

The bleak outlook has pushed Netflix shares down more than 11% in after-market hours.

Netflix Q2 Earnings in Detail

The company reported earnings per share of $1.59, falling short of the Zacks Consensus Estimate by 25 cents but more than doubled from the year-ago earnings of 60 cents. Revenues climbed 25% year over year to $6.15 billion and came in above the Zacks Consensus Estimate of $6.08 billion.

Netflix added 10.1 million new subscribers globally in the second quarter, up from 2.7 million additions seen in the year-ago quarter and the company’s own guidance of 7.5 million. Netflix now has 192.9 million paid subscribers worldwide. The growth was mainly boosted by original content like English scripted TV Never Have I Ever and new comedy Space Force, and unscripted shows like Love is Blind, Too Hot to Handle and Floor is Lava. Original films — Spike Lee’s Da 5 Bloods, Extraction, and The Wrong Missy — and an animated feature film for kids and families The Willoughbys were also big hits.

Netflix is set to introduce 59 new original contents in July, including several new seasons of popular TV shows, entirely new series, new movies, new documentaries, and even some new anime. Some of these are season 2 of The Umbrella Academy, a high-profile Charlize Theron film the Kissing Booth 2, an action movie Project Power, Legendary Pictures’ Enola Holmes, final season of the popular sports documentary series Last Chance U, and the highly anticipated remake of The Babysitters Club. Further, Netflix expects “paused productions” on original shows and films in the first half of 2021, based on its long lead-time content production schedule.

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Disclosure: contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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