Shares of streaming giant Netflix drop following its mixed first-quarter earnings report citing slowing subscriber growth.
Video Transcript
– Let’s take a look at Netflix closing the day in the red, off just about 3% after reporting its first-quarter results. The streamer missing on revenue for the quarter, a slight beat by $0.02 on profit. But the streamer really reporting lower-than-expected subscriber growth, disappointing outlook here for Q2 in regards to revenue, and then, of course, some critical updates that we did get on the earnings call, Dave.
– Boy, it’s been an interesting ride for that stock. Remember, after we saw earnings, it plummeted 12%. Then it opened positive this morning and now has fallen. Yeah, the big takeaway was the password crackdown, password-sharing crackdown has been delayed. The estimates are about 100 million Netflix users are sharing passwords. Morgan Stanley estimates they can convert about 20% to 30% of those to paid customers. Time will tell about that one as we have pushed that off, maybe based on some of the pushback from consumers.
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