Santosh Rao, Head of Research at Manhattan Venture Partners, joined Yahoo Finance Live to talk Netflix's Q1 earnings and his outlook for the company.
(Reuters) -Netflix Inc fell short of Wall Street's projections for new customers in the first quarter, the company said on Tuesday, sending shares down 11%. Roughly 3.98 million people signed up for Netflix from January through March, below the 6.25 million average projection of analysts surveyed by Refinitiv. Netflix forecast just 1 million new streaming customers in the second quarter.
Netflix (NASDAQ: NFLX) quarterly reports are always full of surprises. The streaming stock has a history of moving wildly on earnings reports as its subscriber numbers tend to fluctuate significantly in ways that are difficult to predict. Netflix also aims to provide guidance that is accurate, sharing its actual internal forecasts with investors, rather than offering conservative guidance that it expects to beat, the way many tech companies do.