Netflix Stock Is Sinking. Forget Password Sharing and Subscribers, Here’s Why.
Worries that Netflix NFLX –7.81% ’s crackdown on password sharing would be damaging proved to be unfounded. Ditto with worries about the new ad-supported tier.
Netflix blew expectations for subscriber growth out of the water. The company missed Wall Street’s hopes for revenue and had slightly weaker guidance than hoped for the third quarter. But the 5.6% drop in shares in the premarket Thursday, to $450.66, seems way out of proportion if that were the reason people are selling.
There may be some knee-jerk pushback after the shares more than doubled over the past year. Some investors may have decided to buy leading up to the earnings to sell on the news. READ MORE