Netflix beat its own gloomy guidance for second-quarter subscriber additions, but still lost 1 million subscribers, half what it predicted after a disastrous Q1 report. The company said it expected a return to growth in subscriber rolls in its third quarter.
Share prices, which had been trending upward the past week, jumped sharply both before and after market close today, up about $26 to $215 after the announcement hit. At their peak last November, share prices topped $680.
“It’s tough in some ways, losing a million (subscribers) and calling it success,” Co-CEO Reed Hastings said in an earnings call. “But really, we're set up really well for the next year.”
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