Netflix Performance Below Expectations, Shares Plummet 8 Percent. Pioneering video streaming service provider Netflix posted a performance below expectations in the second quarter of 2023. Netflix reported revenue rose 2.7 percent to US$8.19 billion in Q2/2023, slightly below analysts’ projections. This was partly due to foreign exchange rates and price cuts in some markets.
Netflix also reported a decline in revenue per subscriber in the quarter. The company estimated sales of US$8.52 billion in the third quarter, lower than the average Wall Street estimate of US$8.67 billion.
On the other hand, Netflix was able to increase its subscriber base by 8 percent or 5.9 million to 238.4 subscribers worldwide by the end of June 2023. Netflix shares fell 8.9 percent to US$435 per share after regular trading hours following the release of its financial report.
LightShed Partners analyst Rich Greenfield said Netflix’s performance in the second quarter of 2023 was good but not enough to move the stock price further. co-Chief Executive Officer Greg Peters said that it takes several quarters to realize the financial benefits of paid sharing.
Netflix Performance Below Expectations. Meanwhile, Huber Research Partners analyst Craig Huber said that some shareholders may have become overly optimistic about Netflix’s advertising rates and password breach events.
