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Netflix Faces Tough Road Ahead Even After Subscriber Beat
- Subscriber forecast ‘overly optimistic,’ given the economy
- Cheaper, ad-supported tier may not add many more customers
This article is for subscribers only.
Netflix Inc. may have calmed investors’ worst fears with a second-quarter subscriber loss that was better than expected, but a closer look at the streaming giant’s results indicate it still faces significant hurdles.
Wall Street cheered Tuesday’s subscriber numbers, which were only half as bad as the company forecast. Netflix also projected a return to subscriber growth in the current quarter. The shares rose 7.4% on Wednesday and the positive sentiment lifted other media stocks, including Walt Disney Co. and Paramount Global.