“Netflix Inc. beat its projection for subscriber growth in the first quarter, but the streaming giant’s disappointing forecast for its international business compounded concerns about slowing U.S. expansion, sending shares down about 11% in New York morning trading,” The Wall Street Journal reports today.
“The Los Gatos, Calif.-based company added 6.74 million subscribers in the first quarter, ahead of its estimate of 6.10 million,” the report notes. “That was due, in part, to a surge in overseas growth as the company launched in 130 new markets.”
But challenges loom in the second quarter. “Netflix predicted it will add 2 million international subscribers, compared with 2.37 million in the year-ago period,” WSJ reports. “That is ‘below street estimates and reflects an unexpected slowdown despite the fact they just went global,’ said Drexel Hamilton analyst Tony Wible. ‘Investors will want to dig into that more.’”