Netflix loses nearly 1 million subscribers, and its stock soars

[brooklynite]

Washington Post

Netflix outpaced its own gloomy quarterly forecasts, stemming subscriber losses and posting higher revenue despite a more competitive streaming landscape and challenging economic environment.

The company’s financial results, released after Tuesday’s market close, were widely anticipated. Though the loss of 970,000 paying users might typically not pass for good news, it’s a veritable win compared with the 2 million the company had expected for the three-month period that ended June 30. That sent investors rushing in, powering the stock up nearly 8 percent in after-hours trading.

Shares surged 5.6 percent ahead of Tuesday’s release, closing at $201.63, amid a broad rally that sent the Dow Jones industrial average up more than 750 points, or 2.2 percent. The broader S&P 500 index and tech-heavy Nasdaq ended even higher, up 2.8 percent and 3.1 percent, respectively, as investors appeared buoyed by better-than-expected quarterly earnings that showed businesses were managing withering inflation and despite recession fears.

[Tetrachloride]

1. Netflix is a lot cheaper than a new phone

A big phone is a luxury item by comparison.

Netflix is as cheap as 1-3 visits to Starbucks.

Netflix is something the lower end consumer will keep spending for.

New iphone? next year . that’s a scenario, not based on facts

[KentuckyWoman]

2. They added better content.

I was about to drop them because I can never find anything worth looking at. Now I have a list of things I'm trying to get to before they leave. Hopefully come winter when I'm mostly in there will still be decent content.

[blm]

3. Their SKorean series and films are excellent.

[walkingman]

4. Speculation - give it a few days....The idea of adding ads for a cheaper price sucks.

Traders are desperate these days to try and get a quick bump. Netflix has been a real see-saw ride for the last few years as their competition increases.

[Earth-shine]

5. I dropped Netflix a few weeks ago.

Over the years, I pretty much have seen all I wanted.

That Lost in Space series was excellent.