Netflix stock down slightly after missing domestic subscriber estimates
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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.