Netflix Should Just Admit That Growth Is Slowing
Last week, Netflix (NASDAQ: NFLX) confirmed that its subscriber-growth slowdown continued in the second quarter, as expected. The streaming video pioneer cast this slowdown as temporary, driven by the pandemic's impact on at-home entertainment consumption and original-content production schedules.
However, evidence that Netflix's growth is slowing continues to mount. Management should acknowledge this reality rather than resorting to increasingly convoluted arguments to "prove" that its underlying pace of growth hasn't changed.
Three months ago, Netflix reported that it added 4 million paid subscribers in the first quarter (net of cancellations). That fell short of its quarterly forecast of 6 million paid net subscriber additions. Moreover, the company projected that net paid subscriber growth would slow to just 1 million in the second quarter.
Source Fool.com
