[ad_1]
Streaming Service Netflix Disappointed Expectations – Inventory Accidents
| Reading time: 3 minutes
Netflix business veteran, Reed Hastings, promised investors more than he could hold. The numbers of the streaming service are sobering
Source: pa / dpa / Guillaume Horcajuelo
Especially Netflix pampered its investors with quarterly figures brilliant, but this time the streaming giant can not convince. The numbers of users are far behind the forecasts. On the stock market, the reaction is fierce.
D The Netflix online video service disappointed with surprisingly low user growth in the second quarter. The business figure and outlook were also below expectations, according to the company's annual report released in Los Gatos, California after the US market closed on Monday. The investor's receipt immediately followed: in the US post-trade trade, the share fell temporarily by more than 14%.
"We had a strong quarter but not exceptional," admits Netflix, miscalculated his forecasts have. Especially the subscription numbers have not convinced. According to company information, the US domestic market added 670,000 new users between April and June, or 4.47 million worldwide. Analysts and Netflix were expecting a lot more. In the middle of the year, the streaming giant reached a total of more than 130 million users
Sales did not meet expectations either
The outlook for the current quarter is not have not gone well: Netflix Cards "has made a name and is currently pursuing major expansion projects in India, with for example five million new users." Analysts' forecasts were 6, In the last quarter, revenue jumped 40 percent year-on-year to $ 3.9 billion, but also did not meet expectations.
Although the quarter's results end at $ 65.6 million rose to $ 384.3 million ($ 328.0 million), the disappointment on Wall Street was great.However, Netflix has long been the # 1 39, a major investor in the stock market – since the beginning of the year, the court s of the action had more than doubled. Some experts thought that a correction had been unavoidable for some time. After a strong recovery, investors tend to take profits on signs of a turnaround
Netflix keeps rivals struggling with multibillion dollar investments
Netflix has become a heavyweight in the entertainment world The Hollywood film industry and the clbadic cable providers in the turmoil. Notably because big names like Disney and Comcast, as well as newcomers like AT & T mobile giant, want to equip for the era of online television, the carousel of recovery at USA is currently running at full speed. to keep the competition at bay with huge investments. The company reiterated in its quarterly report that this year, up to $ 8 billion of new television productions. Rivals like Amazon, Hulu or pay-TV HBO are not spending so much, but soon Disney wants to launch its own streaming service. Netflix anticipates increased competition, but told shareholders that the market offers "enough room for multiple parties".
Source link
