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And the reason for doing so is easily found on the internet.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "At first blush, Netflix delivered in the first quarter … and then some. & nbsp;Netflix reported first quarter earnings& nbsp; 76 cents a share versus Wall Street analyst estimates of 57 cents a share. Net sales were $ 4.52 trillion, just above forecasts for $ 4.5 trillion. "Data-reactid =" 24 "> At first blush, Netflix delivered in the first quarter … and then some. share vs Wall Street analyst estimates of 57 cents a share Net sales clocked at $ 4.52 trillion, slightly above forecasts for $ 4.5 trillion.
Netflix added 9.6 million total new subscribers in the quarter, up 16% from a year ago. Analysts estimated 8.94 million new additions.
Nevertheless, Netflix shares dropped as much as 4% in after-hours trading today.
<h2 class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Some warning signs"data-reactid =" 27 ">Some warning signs
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Here are several of the red flags Yahoo Finance on Netflix's quarter: "data-reactid =" 28 "> Here are several of the red flags Yahoo Finance dug up on Netflix's quarter:
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Netflix sees a deceleration in new subscriber additions in the second quarter to 5 million. Wall Street had expected 6.09 million.
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Sales growth slowed for the fourth straight quarter.
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Operating profit margins fell 190 basis points from the prior year.
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The year-over-year growth trend in paid memberships also continues to be lower.
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At an outflow of $ 460 million in the quarter, Netflix spent a quarter of a million dollars ($ 287 million).
Some of Netflix's commentary on its earnings is likely to help feeling, either.
"We are working our way through a series of price increases in the US, Brazil, Mexico and parts of Europe. Q4'18, where our gross additions are unaffected, and we see some modesty in the future. price change, "Netflix said.
<h2 class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Netflix is not perfect"data-reactid =" 46 ">Netflix is not perfect
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Without question, Netflix is a tech titan." tea impending threat of Disney's new streaming serviceNetflix will remain the dominant force in the industry for the foreseeable future. The Netflix is a tech titan. "Data-reactid =" 47 "> Without question, Netflix is a tech titan. The company is investing in the original world and it is unrivaled.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" We do not anticipate that these new incoming "Netflix said about the growth of the growth of the transition from linear to on demand is so massive and because of the differing nature of our content offerings," Netflix said about & nbsp;Apple and Disney. "data-reactid =" 48 ">" We do not anticipate that these new entrants will materially affect our growth because of the transition from linear to on demand is so massive and because of the differing nature of our content offerings, "Netflix said about Apple and Disney.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "But that does not mean Netflix deserves a free Netflix's stock is priced for perfection (price-to-earnings multiple is 134 times trailing-12 month earnings, & nbsp;per Yahoo Finance data), and it did not deliver that level of perfection expected by the masses on Wall Street. It's that simple. "Data-reactid =" 49 "> But what does it mean? Netflix has a lot of money and is ready for perfection (price-to-earnings multiple is 134 times trailing-12 month earnings, by Yahoo Finance data), and it did not deliver that level of perfection expected by the masses on Wall Street.
Netflix's costs of doing business are going up; Apple and Disney are ready to re-evaluate their Netflix subscriptions to Reed Hastings.
Netflix is not MoviePass by any stretch of the imagination, but it is not perfect. And neither is its stock right now.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Brian Sozzi is an editor-at-large at Yahoo Finance. Follow him on Twitter @BrianSozzi"data-reactid =" 52 ">Brian Sozzi is an editor-at-large at Yahoo Finance. Follow him on Twitter @BrianSozzi
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Watch more:"data-reactid =" 53 ">Watch more:
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