Netflix shares dive as subscriber growth falls short

Netflix Inc. stunned Wall Street by attracting fewer subscribers than expected last

Well to many adding 4.47 million subscribers and hitting a new all-time high in subscribers sounds great to wall street they wanted to see a higher subscriber count. Wall Street analysts were expecting Netflix to report $.79 on revenues of $3.94 billion and an addition of 6.2 million subscribers. That's compared with analyst estimates that Netflix would have Q3 net adds of 947,000 in the US and 5.05 million internationally.

"We had a strong but not stellar Q2, ending with 130 million memberships", Netflix said in a letter to shareholders. In second quarter previous year, Netflix posted $2.79 billion in sales. Worldwide Netflix added 4.47 million subscribers below the 5 million predicted.

Cash burn - something Netflix has been reducing for the past few quarters - also had a noticeable uptick.

Fans Finally Get Their ‘Uncharted’ Dream Casting In A Short Film
So director Allan Ungar chose to just go ahead and give the fans what they want in a fifteen-minute fan film, anyway. The film seems to have captured the same fantastic combo of action and humor as the Uncharted games themselves.

Despite the "near-term gut punch", Netflix is still well-positioned for future growth, GBH Insights analyst Daniel Ives wrote in a note. As Yahoo Finance previously reported, Netflix plans on spending roughly $2 billion on original content for 2018 - 25% of the $8 billion it spends on all content.

Netflix's explosive growth may be starting to plateau. All told, Netflix now boasts upwards of 130 million subscribers across the globe. For the first time, Netflix generated more revenue outside the U.S.: global revenue totaled $1.92 billion and U.S. revenue was $1.89 billion for Q2. "In addition to succeeding commercially, we are starting to lead artistically in some categories, with our creators earning enough Emmy nominations this year to collectively break HBO's fantastic 17-year run".

The online streaming giant's shares have soared 115pc since the start of the year, helping it leapfrog Disney to become the most valuable media company in the world.

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