What is happening today to Netflix stock?
Looks like it's down -25% in after hours trading today.
The market is down for sure but a 25% drop? (down another -3% to 28% at time of writing and sliding).
They did report earnings/profit earlier of 59 million usd in Q3 (well up on last year of 32 million) and they also reported a slower than expected growth of subscribers. Revenues of 1.2 Billion versus expected 1.4 Billion.
But 3 million new subscribers up to a staggering 53 million in total albeit, below expectations. The EPS is about half of what was expected. And the market is identifying a cashflow issue.
(HBO also announced today that they are moving into the online streaming space as a standalone in 2015 and will compete with Netflix).
But But But...really - extraordinary profits and growth in subscribers - yet a crash in the stock price? It's in freefall!!!!
There's something up....that's not just in the numbers.....somebody knows something we don't.
(BTW And it has opened this morning on the markets -23% down).
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