2024-04-23 15:35:27 ET
Summary
- Netflix shares sank after its Q1 earnings release, driven by its decision to stop reporting subscriber counts starting in FY25.
- Though most investors are reading this as a reduction in transparency and potential cover for sub weakness, I think the move will help reduce Netflix earnings volatility going forward.
- Netflix added 9.3 million subscribers in Q1, with 2.5 million coming from the U.S. and Canada.
- Revenue is expected to continue accelerating in Q2, driven by a favorable response to pricing increases and a strong content slate.
Some stocks are destined for volatility with each and every earnings release. That is certainly the case for Netflix, Inc. ( NFLX ), which sees outsized swings in both the positive and negative directions every quarter. Even if it weren't for today's overly volatile macro environment, Netflix would still be swinging wildly on subscriber additions data versus expectations....
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For further details see:
We Don't Need Subscriber Counts To Conclude That Netflix Is A Powerhouse