Netflix Drops After Results Show Tough Streaming Competition
- Subscriber gain and forecast both fall short of estimates
- End of lockdowns and return to sports have crimped its growth
This article is for subscribers only.
Netflix Inc. tumbled Wednesday after missing Wall Street’s estimates for subscribers, renewing doubts about its ability to maintain growth as pandemic lockdowns go away and competition intensifies.
The world’s largest paid streaming service added just 2.2 million new subscribers in the third quarter, it said Tuesday. That was well short of the 3.32 million predicted by analysts, as well as the company’s own more conservative projection. Netflix also predicted that it will sign up 6 million new subscribers this period, below the 6.54 million Wall Street estimate.