Netflix tumbled in late trading after its results and outlook both missed Wall Street estimates, renewing doubts about its ability to maintain growth as pandemic lockdowns go away.
The world’s largest paid streaming service added just 2.2 million new subscribers last quarter, well short of the 3.32 million predicted by analysts—and even the company’s own more conservative projection. Netflix also predicted that it will sign up 6 million new subscribers this period, below the 6.54 million estimate.
Throughout the pandemic, Netflix has warned that the subscriber boom wouldn’t last—and in fact, that its surge in new customers could suppress growth in the future. But it has struggled to predict the timing. While Netflix’s forecasts for the second quarter proved too cautious, its outlook for the third quarter was too rosy.