Today Netflix reported their 2nd quarter 2018 numbers. According to Netflix they added 670,000 new subscribers in the United States but miss the expected 1.2 million subscribers. Worldwide Netflix added 4.47 million subscribers below the 5 million predicted. This sent Netflix shares tumbling 12.6% (at time of this posting) in after-hours trading.
Well to many adding 4.47 million subscribers and hitting a new all-time high in subscribers sounds great to wall street they wanted to see a higher subscriber count. The reason behind this is that Netflix is currently has a free cash flow of negative $559 million meaning they once again spent more in the second quarter of 2018 than they made.
The good news is Netflix did see a 43% increase in streaming revenue likely from the higher subscriber numbers and new price increase.
Netflix is still expecting a big second half of 2018 with many new hit shows still to come and several big deals. Netflix is hoping a flood of content from new sources including the Obama family will help push new subscribers to the service.
This is breaking news we will update this story as we learn more.
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