just finished reviewing Netflix's earnings call, and a lot of the headlines are misleading people.
subscriber numbers look okay on the surface, but paid additions completely missed the higher expectations that were floating around. North America was basically flat, and ad revenue per user is growing really slowly.
I was still holding out some hope because the ad-supported tier was supposed to drive the next phase of growth, but this report pretty much kills that idea.
After hours trading has the stock down over 5.5% already, hitting 82.29 (checked a few breakdowns, and this one worth a look if you're interested: \[NFLX Q4 Earnings: Ad Tier Underperforms, Weak Guidance Sends Stock -5% AH )\](https://www.moneyai-app.com/share/session?shareUuid=98114599-6449-4ac8-afa5-c361331a7436)
q1 guidance is weak, they're blaming churn and currency effects, but overall growth is clearly slowing down fast, and ad monetization is falling well behind schedule.
Wall Street research notes are mostly buy ratings, and management is acting like everything fine, but the reality is subscriber growth is reaching saturation, and the next growth driver isn't materializing.
Institutions obviously sold ahead on low volume, leaving retail to take the losses again.. this stock could keep dropping for months.
