The Netflix ($NFLX) Tipping Point

Netflix [stckqut]NFLX[/stckqut], had a rough couple of days. The streaming media company met its projected third-quarter $0.07 earnings per share but missed on its projected revenue figures, generating $1.738 billion instead of the estimated $1.743 billion. After-hours trading was impacted negatively by the news, trading down 10% at one point, while investors had a mixed array of thoughts.

Netflix subscriber figures were not promising as well. Domestically, the company added only 880,000 new members, compared to the more promising international addition of 2.74 million. This comes to a total of 3.62 million new Netflix members, which is a marginal increase from the year-to-year figure of 3.02 million combined.

New US subscribers, however, have been on the decline since the company’s 2015 first-quarter and may very well plateau sooner than later, despite their projected 1.65 new members for the 2015 fourth-quarter.

Source: The Netflix Tipping Point

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