(MENAFN- Baystreet.ca) Netflix, Inc. (NASDAQ:NFLX) released its latest quarterly results on Wednesday. The good news was that the company beat earnings expectations. The bad news was that it didn't do well in most other areas.Netflix was expected to have net additions totlling five million subscribers for the quarter and came nowhere near that with its net adds coming in at just 2.7 million. Its revenues also came in a bit below what analysts were expecting.
What's perhaps most telling and disappointing is that in its domestic market in the U.S. where it was expecting to add more than 30,000 subscribers, it ended up losing more than 100,000. Given the company has increased prices on consumers and is losing key content, it may not come as a big surprise that the streaming company has been struggling. However, a miss that big on subscribers suggests that the company may be underestimating the impact of some of its decisions, and it wouldn't give me a whole lot of confidence as an investor. And so it's not a surprise that the stock was down more than 10% in after-hours trading.
With more competition coming from Disney (NYSE:DIS) and other platforms, it's not going to get any easier for Netflix to grow subscribers and keep its earnings strong. There's likely going to be a lot more pain coming for the company and the stock may not be worth the high multiples that it trades at today. Heading into the earnings release, Netflix stock was up more than 35% year to date. However, over the past 12 months it is still down 4%.
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