Shares of Netflix (NASDAQ"NFLX) were sharply lower in pre-market trading Wednesday after the company reported slower subscriber growth in its latest quarter.
The world’s largest paid streaming service added 2.2 million new subscribers last quarter, well short of the 3.32 million predicted by analysts. Netflix also predicted that it will sign up six million new subscribers this period, below the 6.54 million Wall Street forecast.
The subscriber numbers renewed doubts about Netflix’s ability to maintain growth as pandemic lockdowns ease and competition among streaming companies intensifies. It was Netflix’s weakest third-quarter subscriber gain since 2015.
Netflix added 25.9 million customers in the first half of the year, its strongest six-month period ever. Yet throughout the pandemic, the company has warned that the subscriber boom wouldn’t last -- and that its surge in new customers could suppress future growth.
Many viewers -- especially in Europe and Asia -- have returned to normal day-to-day life, reducing the amount of time they can spend watching Netflix. And professional sports have returned to Americans’ TV screens. All of that hampered subscriber gains last quarter, with growth suffering in all three regions.
Netflix shares fell as much as 7.4% to $486.50 U.S. on news of its latest results. The stock had been up 62% this year, giving the company a market value of $231.7 billion U.S.
Tech Insider
