Netflix shares plunged -11% after-hours, following a major miss of subscriber numbers in its first-quarter earnings report.
The video streaming giant’s global paid net subscriber additions were 3.98 million in the quarter, compared to 6.2 million expected by analysts polled by Factset. According to Netflix, the slowdown in subscriber numbers could be due to the ongoing coronavirus pandemic, which compelled the company to delay production of some shows and films. The company also said it only expects to add about 1 million subscribers in the current quarter.
Earnings per share of $3.75 per share, however, beat expectations of $2.97 (according to Refinitiv survey of analysts).
Revenue came in at $7.16 billion, vs $7.13 billion expected by analysts polled by Refinitiv.