Shares of Netflix fell more than 11% after the close of trading on Tuesday, as the low number of new users of the streaming giant disappointed investors.
Market analysts predicted a decline, but did not expect it to be so strong. In 2020, Netflix, on the one hand, received an incredible increase in users of 15.8 million to more than 200 million when people in quarantine were looking for entertainment at home, on the other hand, its film production was stopped for a long time and resumed only in recent years. several months.
Netflix shares have risen 25.6% over the past 12 months and only 1.63% since the beginning of 2021, while the Nasdaq Composite technology index has risen 66.84% over the past 12 months and almost 7% since the beginning of the year.
The dynamics of the change in shares of Netflix since July last year is reminiscent of roller coasters, as investors assessed how justified their strong growth at the beginning of the pandemic, as well as pressure from competitors and future growth prospects.
Netflix said it added 3.98 million new global subscribers in the first quarter of 2021, while analysts expected 6.2 million more. This is Netflix’s lowest quarterly result since 2013, compared with 8.5 in the previous fourth quarter. million new global subscribers.
Wall Street did not expect the decline to be so strong, although Netflix executives warned that growth would slow given the mass vaccination against COVID-19 and return to normal life, and experts noted that it is becoming more difficult for large companies to keep growth high.
Netflix said the decline was due to a long shutdown in film production last year, which will reduce the amount of new content on the streaming platform in the first half of 2021.
At the same time, the company’s management indicated that the situation will change in the second half of 2021, as Netflix has resumed filming and film production is operating in almost all major markets. If this continues, Netflix has said it plans to spend more than $ 17 billion on content this year.
The company also said it did not believe that increased competition had led to a decline in the number of new paid subscribers. Netflix’s biggest and fastest-growing rival is the Disney + (DIS) streaming service, which has more than 100 million subscribers, and also has HBO Max from AT&T (T), Apple TV + (AAPL), and Amazon Prime ( AMZN) and Peacock from Comcast (CMCSA) NBCUniversal.
Despite the slowdown in the growth of new subscribers, Netflix reported a jump in net profit more than twice and profit growth of 24% to a new high. Netflix earnings in the first quarter of 2021 rose 139% to $ 3.75 per share against analysts’ expected $ 2.97. Quarterly revenue rose to $ 1.71 billion from $ 709 million a year earlier. Netflix revenue rose 24% to $ 7.16 billion, also above Wall Street averages of $ 7.13 billion.
For the coming quarter, Netflix has lowered its expectations for the number of new paid global subscribers, saying it hopes to add only about 1 million.
Netflix has also approved a share repurchase program worth up to $ 5 billion starting in 2021 without a fixed expiration date. It is expected to begin this quarter, the company said.
Despite strong competition in the UCAN region: USA and Canada, Netflix continued to increase its subscribers there, as it did worldwide in the first quarter (excluding the impact of exchange rates). This indicates that the industry leader still holds strong positions.
Temporary changes associated with the arrival of the pandemic and subsequent vaccination will pass, and consumers will still appreciate quality content on streaming platforms. Netflix relies on this, so it is preparing a lot of new and recently signed a contract with Sony Pictures for 5 years with the right to broadcast new products after their release in theaters.
American carmaker Ford is recalling more than 661,000 Ford Explorer crossovers in North America due to problems with disconnecting the roof rails. Reuters reported this the day before. The US National Highway Traffic Safety Administration requested a recall. If necessary, the dealer will install special pins and replace the damage. Since the beginning of 2020, […]
World oil prices of reference brands began the working week with a moderate increase amid disruptions in the US Colonial Pipeline after a hacker attack. This is evidenced by trading data on Monday, May 10. Thus, July futures for Brent on the London Stock Exchange ICE Futures rose by $ 0.57 (0.83%) – to $ […]
Ukrzaliznytsia has signed a memorandum on cooperation and localization in Ukraine of passenger rolling stock production by the Swiss company Stadler CIS AG. The press service of the Ministry of Infrastructure reports. According to the document, the parties will work together to develop passenger rail transport in Ukraine and attract funding. In addition, if Stadler […]
In the first quarter of 2021, the net outflow of foreign direct investment from Ukraine amounted to 301 million dollars. This was reported on the website of the National Bank. At the same time, negative reinvested earnings of $ 141 million were recorded. According to the NBU, investments in equity (excluding reinvestment of income) amount […]
The state enterprise SETAM sold the most expensive lot of seized property on the electronic platform OpenMarket – the building of the hotel of the Military-St. Nicholas Monastery in Kyiv. The SETAM press service reported this. It is noted that the final price of the lot is 307.3 million hryvnias, which is 65 million hryvnias […]
Naftogaz states that in the first quarter of 2021 they received a net profit of UAH 12.6 billion against UAH 3.2 billion a year earlier. The group’s CFO Petrus van Drill said so. “I am pleased to announce that the net profit in the first quarter of 2021 is UAH 12.6 billion (unaudited preliminary result, […]
According to the results of 2020, Ukrenergo’s loss amounted to almost UAH 27.5 billion against UAH 1.86 billion profit a year earlier. This is evidenced by a report in the information disclosure system of the NSSMC. According to him, last year the company’s net income increased 2.2 times (by UAH 31.9 billion) to UAH 58.250 […]
German airline Lufthansa made its first flight to Lviv on April 30, after a one-year break. 79 passengers arrived in Lviv, which is almost 100% of the aircraft load. It is reported that in the first month the airline will fly three times a week, and in June the number of flights will increase to […]
The state bank “Oschadbank” plans to recover in court more than $ 100 million from the largest producer of mineral fertilizers in Ukraine – “Stirol” concern. It is reported by UNIAN with reference to the Unified State Register of court decisions. The question is about $ 100 million debt of the concern, that is the […]Next
The Supreme Commercial Court of Ukraine overturned the decision on the recovery of a fine in the amount of 72.7 million UAH to PJSC Arcelor Mittal Kryvyi Rih. This information was reported by the representatives of the Ukrainian industrial complex on December 20th. According to a statement, prosecutors claim was rejected, and the previous decision […]Next
Savvy entrepreneurs use these strategies to ensure every business partnership is a match made in heaven. Great businesses are founded on great partnerships. But great businesses can also be destroyed by bad partnerships. These entrepreneurs—and members of The Oracles—share their hard-won wisdom about what to watch out for before joining forces with a business partner. […]Next
The owner and president of DCH Oleksandr Yaroslavsky is ready to attract $ 1 billion in investments in the restoration of the Kharkiv Aviation Production Enterprise. This statement is published on the official website of the DCH. “The DCH Group is ready to take responsibility for the resumption of domestic aircraft construction and raise $ […]Next
A staff lawyer or a freelance consultant? This question was asked by many businesses, if not by all. And any of the control of management found both pluses and minuses of each option. Some people prefer in-house lawyers (corporate – in house), because they know the situation “from within”, while others are trying to involve […]Next
NPJSC Ukrtransgaz, Engie and its Enegie Energy Management Ukraine subsidiary company have concluded the contracts on natural gas transportation and storage. NPJSC Ukrtransgaz is reported about it.The agreement conclusion has taken place in Paris during Ukrainian and French economy forum . Igor Prokopiv, the President of NPJSC Ukrtransgaz admitted that they were ready to perform […]Next
«Syutkin & Partners» Law Firm prepared a new series of programs “CAPITAL”. The “CAPITAL” discusses topical issues of big business in today’s economic climate: tax audits, economic crimes, corporate conflicts, etc. You will hear the views of industry experts and recommendations of specialized lawyers. Qualitative law business support will save and increase your capital. The […]Next
On Sunday, Dominion Energy, one of the largest energy companies in the United States, announced a final agreement to sell virtually all of its assets in the gas transportation and storage segment of Berkshire Hathaway Inc. under a deal valued at $9.7 billion, including its current debt of $5.7 billion. The deal with Dominion will […]Next
Facebook announced that it is shutting down two of its little-known apps shortly after they launched them. According to CNBC, Lasso, TikTok’s competitor, and Hobby, the competitor of Pinterest, will be shut down on July 10. Facebook released Lasso for iOS and Android in 2018. It was created to share 15-second videos with effects. The […]Next
The vaccine, developed by biotechnology company Moderna, is effective in 94.5% of cases. This result was shown by the intermediate results of the third phase of clinical trials, the company said. On this news, Moderna shares went up. In the pre-market, the company’s quoting rose by more than 18%, rising above $ 105 per share. […]Next
Ukrainian monitoring center registration data OpenDataBot has promulgated the final quantitative indicators of the enterprises registered in Ukraine. From these data, it became clear that for the year in Ukraine already exist more than a million active businesses, but despite this, very few of them are operating in the field of intelligent technologies (IT) – […]Next
The Antimonopoly Committee of Ukraine (AMCU) has imposed a fine on the company operating the network of gas stations belonging to the Privat group for anti-competitive concerted actions in setting oil prices. The fine amounted to UAH 4.7 billion, the press service of the Antimonopoly Committee of Ukraine reports. Thus, on Tuesday, March 30, a […]Next
Chinese Internet company Alibaba and electronics manufacturer Xiaomi will be included in stock exchange index Hang Seng Index from September 7, said the operator’s Hang Seng Indexes. Earlier, the operator announced the results of the review of indexes for the quarter ended June 30. Along with Alibaba and Xiaomi, the index will also include WuXi […]Next
The Supreme Court declared Astra Bank insolvent, the press service of the National Bank reports. By its decision, the Supreme Court overturned the decisions of the Kyiv District Administrative Court and the Sixth Administrative Court of Appeal, which found the central bank’s actions illegal. The NBU reminded that Astra Bank is the only bank that […]Next
Following the third phase of trials of its COVID-19 coronavirus vaccine, Moderna said the drug was generally well tolerated and no serious health problems were identified. According to the company, the effectiveness of its vaccine reaches 94.1%, and 100% for preventing severe coronavirus cases. Previously, the manufacturer estimated the effectiveness of its drug at 94.5%. […]Next
The Kyiv shipyard Kuznya na Rybalskomu (Ukrainian: “Кузня на Рибальському”) has returned to the state budget more than 300 million UAH, which the Ministry of Finance had previously paid on the company’s debts. It is noted that in 2017 the government provided state guarantees for a plant loan from Ukreximbank. The credit line allowed to […]Next