Netflix (NFLX) - Get Report reported earnings and said that it expects to add around 1 million new subscribers to its streaming service this quarter, a figure that came in below forecasts of around 4.8 million. The estimate followed a weaker-than-expected March quarter tally of 3.98 million, which also missed analysts' estimates of a 6.25 million total, TheStreet's Martin Baccardax noted.
"In terms of Q1 performance, it really boils down to COVID, frankly (which) continue to have a big impact on the world." CFO Spencer Neumann told investors on a conference call late Tuesday. "For us, at a minimum, it creates just some short-term kind of choppiness in some of the business trends that we see.
"And we also have a near-global shutdown in production which we've been ramping safely and at scale through much of last year and into this year, but it did push some key title launches into the back end of this year," he added. "So the combination of those two things does create some noise (and) it's super hard to forecast quarterly subscribers, particularly in this environment."
Despite the disappointing results, in the video above, Jim Cramer breaks down why he still believes Netflix has a place in FAANG.
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