Netflix Is Turning Into a Profit Machine
Netflix (NASDAQ: NFLX) wowed the market with its first-quarter earnings report Tuesday.
The leading streamer saw a surge in new members with 15.8 million subscriber additions as the stay-at-home orders around the world have driven demand for in-home entertainment options like Netflix.
The market's response was tepid, however, as CEO Reed Hastings cautioned that much of that subscriber growth represented members being pulled forward from future quarters, so he expected growth to cool off year-over-year in the second half of the year. Netflix's quarterly revenue was also just slightly ahead of expectations, at $5.76 billion compared to $5.73 billion, due to a stronger U.S. dollar, while earnings per share of $1.57 was below its forecast of $1.66 due to incremental spending on paused productions and hardship funds to help support unemployed production workers.
Source Fool.com
