Netflix forecast misses Wall Street view, shares dip

Netflix forecast misses Wall Street view, shares dip

Netflix (NFLX) has released its fourth-quarter earnings report, revealing details about its subscriber numbers and annual growth revenue.

The company's stock price didn't react well to the news, dropping as much as 4.6% on Friday.

Q4 total paid subscriber growth (paid net additions): 8.8 million, versus Wall Street estimates 7.6 million and Netflix forecast 7.6 million.

It emerged this week that video footage from the 2013 Lac-Mégantic rail disaster - in which 47 people died - had been used in the Netflix science fiction show Travelers, as well as in the film Bird Box.

Netflix is quickly approaching 150 million subscribers.

Shares of Netflix Inc fell almost 5 percent on Friday, as investors looked past its record subscriber numbers and instead focused on its lower-than-expected revenue forecast for the first quarter. The company said the Spanish series "Elite" was watched in more than 20 million member households worldwide in its first four weeks, while Turkish show "Protector" was watched in more than 10 million.

In the previous quarter, ended December, Netflix's revenue was placed at $4.19 billion whereas Wall Street had forecast the company's revenue at $4.21 billion.

Shares, which had risen sharply in recent weeks, dipped more than 3% in after-hours trade, after revenue for the fourth quarter fell shy of analyst expectations.

The Online video service Netflix has seen the end of the year strong growth: in the World were recorded in the three months to the end of December 2018, the bottom line is 8,84 million new paid subscription-based, as the company announced on Thursday after USA stock exchange conclusion. Sarandos discussed the strategy going forward and where the increased subscriber fees would help with buying original films like "Bird Box". Both of the companies are now in the process of developing their own streaming platforms and in the case of Disney, Netflix has started to distance themselves from the company by canceling Disney-owned properties like Daredevil, Iron Fist, and Luke Cage. Netflix spent $7.5 billion previous year on films and shows and expects to spend more as it commits to producing more original fare versus licensing.

Netflix's cheapest basic plan will now cost $9 a month, up $1 from $8. Stocks trading at high earnings multiples are more prone to sell off if growth targets are missed. The losses will start to shrink thereafter, the company said.

Netflix was ahead of the pack when it came to getting customers to cozy up inside their homes and binge shows and movies. The letter also notes that when YouTube went down globally for a few minutes in October, Netflix's viewing and signups spiked for that time.

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