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Netflix shares slide as it misses revenue estimates despite profits bump

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Jerry Miller
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Shares in Netflix fell as much as five per cent in after-hours trading last night, after the streaming giant missed analyst estimates on revenue and paid subscriber growth.

Netflix reported $4.19bn in revenue for the three months to the end of December last year, narrowly missing the $4.21bn predicted by consensus estimates, as collated by S Global Market Intelligence.

It added a record 8.84m paid subscribers globally in its fourth quarter, but failed to meet analyst expectations of 9.18m additions.

Netflix said it expects to add 8.9m subscribers in its current quarter, after having raised prices for its subscription packages in the US earlier this month by as much as 18 per cent.

However investor fears were mitigated as it raked in earnings before tax of $119.4m, beating expectations of $105.1m by more than 13 per cent.

Much of Netflix's growth has been fuelled by its heavy investment into producing original content, including award-winning shows such as The Crown, Stranger Things and Bird Box.

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