Locked
Alec Hogg: Netflix shares tank, triggers buying opportunity
"Long-term investors may well view Netflix shares below $500 as a buying opportunity. I do," writes BizNews founder Alec Hogg.
After the release of its financials for the first quarter of 2021, Netflix shares were hammered in after-hour trading last night, dropping from over $550 to below $500. Reason: For the seventh time in the last 21 quarters, the company undershot its projected subscriber growth number.
Just like Mr Market was once focused exclusively on Apple's iPhone sales (ignoring issues that mattered more), with Netflix he's obsessed with the subscriber growth number. After breaking through 200m subscribers in the December quarter, Netflix added 4m new members in Q1. But it had projected growth of 6m. So despite record revenues (above), the share price fell 11%.
___STEADY_PAYWALL___