Jan 21, 2020

Netflix stock down slightly after missing domestic subscriber estimates

Photo: Jaap Arriens/NurPhoto via Getty Images

Netflix's stock was down slightly in after-hours trading on Tuesday after it missed investor expectations for domestic user growth, a sign that increased competition from Disney and Apple may be impacting its growth in North America.

Yes, but: The company still posted strong overall subscriber growth, beating analyst estimates by over 1 million subscribers internationally. It also surpassed expectations for revenue and earnings per share, an impressive feat for a company that is facing massive debt.

The big picture: This quarter's earnings are the first since the "streaming wars" really began to pick up. Disney launched its subscription streaming service Disney+ on Nov. 12. Apple launched its streaming service Apple TV+ on Nov. 1, while AT&T and Comcast/NBCUniversal are slated to launch their respective streaming services in April.

By the numbers, per CNBC:

  • Earnings per share: $1.30 per share (not comparable to Refinitiv estimates)
  • Revenue: $5.47 billion vs. $5.45 billion expected, per Refinitiv
  • Domestic paid subscriber additions: 550,000 vs. 589,000 expected, per FactSet estimates
  • International paid subscriber additions: 8.3 million vs. 7.17 million expected, per FactSet

What's next: Netflix will hold a video Q&A presentation for investors at 6 pm ET.

Go deeper: Netflix releases revenue and subscription data by region for first time

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Trump hits back at Mattis: "I gave him a new life"

President Trump speaks at the White House. Photo: Doug Mills - Pool/Getty Images

President Trump unloaded on his former defense secretary via Twitter on Wednesday, hours after James Mattis condemned him for making a "mockery of our Constitution" in his response to mass protests in the wake of George Floyd's killing.

What he's saying: "Probably the only thing Barack Obama & I have in common is that we both had the honor of firing Jim Mattis, the world’s most overrated General. I asked for his letter of resignation, & felt great about it. His nickname was 'Chaos', which I didn’t like, & changed it to 'Mad Dog'"

Obama praises young protesters, urges mayors to pursue police reforms

Former President Barack Obama called on all mayors to review their use-of-force policies and commit to policing reform in a virtual town hall Wednesday hosted by the Obama Foundation's My Brothers Keepers Alliance.

Why it matters: Obama has addressed the killing of George Floyd and the nationwide protests that followed on social media and in a Medium post, but this was his first time speaking about the past week's events on camera. His voice will add weight to the growing pressure on local, state and federal officials to pursue policing reforms.

James Mattis condemns Trump as a threat to the Constitution

Mattis on Fox in Septemnber 2019 in New York City. Photo: Steven Ferdman/Getty Images

Former Secretary of Defense James Mattis condemned President Trump for making a "mockery of our Constitution" in a statement to The Atlantic on Wednesday, saying he was "appalled" at the president's response to mass protests in the wake of George Floyd's killing.

Why it matters: Trump’s former defense secretary had refrained from publicly criticizing his former boss since resigning in 2018.