NFLX - Netflix stock sinks despite strong subscriber growth in Q1

2024-04-18 16:09:21 ET

Netflix Inc (NASDAQ: NFLX) is trading down in extended hours on Thursday even though it reported market-beating financial results for its first quarter.

This is a developing story. Figures missing below will be updated as received!

The price action is interesting considering the mass media behemoth topped Street estimates for net new subscribers as well.

ended its Q1 with 269.6 million subscribers in total – well above $264.21 million that experts had forecast. Its letter to shareholders reads:

We have built a hard to replicate combination of strong slate, superior recommendations, broad reach and intense fandom, which drives healthy engagement on Netflix. Improvement in these key areas is the best way to continue to grow our business.

Wall Street currently has a consensus “overweight” rating on Netflix stock that’s now up more than 25% versus the start of 2024.

Investors are cheering also because Netflix issued encouraging guidance for the future on Thursday.

The streaming giant now forecasts up to a 15% annualised increase in revenue this year on operating margin at 25%. also told its shareholders today:

Note that Netflix shares do not currently pay a dividend.

Earned $2.33 billion versus the year-ago $1.30 billion

Per-share earnings also improved from $2.88 to $5.28

Revenue climbed 14.7% year-over-year to $9.37 billion

Consensus was $4.52 a share on $9.28 billion in revenue

This is a developing story. Check back in a few minutes for more updates!

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