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

Go deeper

The next phase in the streaming wars begins

Reproduced from CivicScience; Chart: Axios Visuals

Netflix is the No. 1 streaming service in terms of the number of current users, capturing 64% of respondents in a recent survey of U.S. adults. But its future growth is much less certain, according to new data from CivicScience.

Why it matters: Since the start of the year, Netflix stock has caught fire again, outpacing Disney's stock by almost 13% year to date — up 7.9%, with Disney off by 4.6%.

Go deeperArrowJan 27, 2020

Disney says Disney+ has 26.5 million subscribers

Photo: Chesnot/Getty Images

Disney's stock rose Tuesday after revealing that its new streaming service, Disney+, now has 26.5 million paid subscribers. It also said that ESPN+, its sports streaming service, now has 6.6 million subscribers, up from 3.5 million in November.

Why it matters: Disney's strong showing shortly after it debuted its streaming service last November shows that it will be a formidable competitor to Netflix in the streaming wars.

Snap stock sinks after mixed Q4 earnings

Illustration: Rebecca Zisser/Axios

Snap Inc.'s stock was down 11% Tuesday in after-hours trading after the company reported it fell short on Wall Street's revenue expectations.

Yes, but: The company otherwise did pretty well. It turned its first-ever profit on an adjusted basis and grew its user base for the fourth consecutive quarter. It also provided positive guidance for the quarter ahead.