Netflix had a great second quarter at a time when the rest of the industry was struggling.
The streaming giant added close to 6 million subscribers and a solid revenue of $8.19 billion, up from $7.97 billion a year ago. In addition, it hiked its free-cash-flow estimates.
By International Business Times
Original article published at: https://www.ibtimes.com/why-wall-street-cooled-off-netflixs-earnings-3705878
Thanks to many revenue-enhancing initiatives like password crackdown and ad-supported subscription models.
"In its bid to bolster monetization and stay ahead in a fiercely competitive industry," Dan Goman, CEO of Ateliere, told International Business Times. "Netflix initiated several revenue-enhancing initiatives, including an ad-supported tier, a crackdown on password sharing and removed its basic ad-free tier."
All these efforts have been well received by investors and have had a positive overall result on subscriber growth and earnings."
"Netflix's recent earnings report showcased a resilient performance, with earnings per share beating analyst estimates," said James Allen, CPA and CFP.
Yet Wall Street doesn't seem to be impressed with the company's performance this time, sending its shares more than 8% lower in after-hours trade.