Netflix Stock Falls 11%
CBJ — Wall Street brokerages are sticking to a positive outlook on Netflix despite its stock losing 11% of its value in the 2nd quarter in the face of more intense competition.
Netflix added 2.8 million international paid streaming subscribers, but that fell well short of Wall Street expectations of 4.8 million and thus the immediate reaction on the stock market.
Netflix, which has 151.6 million customers, raised prices in Britain, Switzerland, Greece and Western Europe in the quarter, which could also have been a factor in the lower than expected new subscriber base.
The company forecasts it will gain a lofty 7 million subscribers globally in the third quarter. It also laid out an extensive expansion plan in India, including five new originals, a prequel series to India’s epic fantasy franchise “Baahubali” and rolling out a lower-priced mobile-only plan within the next three months.
Netflix is an American media company whose primary business is providing a subscription-based streaming service which offers online streaming of a library of films and television programs, including those produced in-house.