The number of users of Netflix fell short of expectations in the second quarter of 2018 and the stock price plummeted by 15%

by Charles Deluvio

Netflix announced the settlement of accounts for the second quarter of 2018. As expressed in the letter to shareholders "Although it was powerful but there was no outstanding part", the increase in the number of users increased to 5.15 million people, the increase pace slowed down, and it did not meet the analyst's predicted figures. Following this announcement, the stock price plummeted by 15%.

Netflix - Netflix Second Quarter 2018 Earnings Interview
https://ir.netflix.com/investor-news-and-events/investor-events/event-details/2018/Netflix-Second-Quarter-2018-Earnings-Interview/default.aspx

Netflix's Slowdown Sparks Fresh Fears of Video-Streaming Bubble - Bloomberg
https://www.bloomberg.com/news/articles/2018-07-16/netflix-plunges-after-slowing-growth-threatens-highflier-status

Netflix's favorable condition is where everyone knows, and also recorded sales of $ 390.72 million (about 44 billion yen) in the second quarter of 2018. However, according to USNews and Bloomberg, analysts' estimate was a little over $ 399 million (about 44.9 billion yen).

Regarding the number of subscribers as well, the forecast by analysts forecasts increased by 6.77 million, Netflix was expected to increase by 6.2 million, but in fact it fell short of 5.15 million.

Following the announcement of Netflix's financial results, stock slowdown fell 15%, due to concerns about slowing growth in business.

Regarding the slowdown in growth, Bloomberg cites the lack of attractive content and the rival of football 's World Cup .

If the influence of the World Cup is large, it will not be affected after the next term, but if you are budgeting about 860 billion yen and still "content shortage", if you do not review the content production in the first place It may not be the case.