While there is no doubt Netflix has been a friend of many amid the coronavirus pandemic shutdown, investors were less than excited when the streaming giant reported quarterly earnings after the bell Thursday.
Netflix reported adjusted earnings per share of $1.59, missing analyst estimates of $1.81 by 22 cents. Revenue of $6.14 billion, slightly exceeded estimates of $6.08 billion.
The company’s total paid subscribers increased 27% to 192.95 million, with 10.1 million subscribers added in the quarter.
Despite strong subscriber growth in the quarter, management’s less than optimistic vision of the future sent the stock tumbling after hours.
Netflix expects growth to slow in the current quarter with 2.1 million subscribers added, less than the consensus expectation. "As we indicated in our Q1’20 letter, we’re expecting paid net adds will be down year over year in the second half as our strong first half performance likely pulled forward some demand from the second half of the year. Growth is slowing as consumers get through the initial shock of Covid and social restrictions,” the company said in the earnings release.
The company also said it expects to launch less original series as the pandemic put a halt on production. Netflix outlined a priority to "restart our productions safely and in a manner consistent with local health and safety standards."
In other company news, Netflix announced that chief content officer Ted Sarandos has been promoted to serve as co-CEO with current CEO Reed Hastings, but Hastings was quick to clarify that he isn’t going anywhere. "To be totally clear, I’m in for a decade," Hastings said during the earnings call.
How should investors approach Netflix stock after earnings?
Jim Cramer said it's time to start treating Netflix subscribers like pantry stocking during the coronavirus pandemic.
Watch More Videos From TheStreet and Jim Cramer: