Netflix Bludgeoned After Hours

Last week there was a circus in after hours for F5 Networks (NASDAQ:FFIV) – originally it was down strongly and then after the conference call was up sharply.  If Netflix (NASDAQ:NFLX) is going to enjoy such a fate it better have the conference call of the century.  The widely followed stock is taking a big hit in after hours.   Looks like revenue came in line and EPS was a beat at $-0.08 vs $-0.27 expectation.  Guidance seems a tad light at a range of $873M-$895M vs $893M but this seems like a brutal reaction if that is the only issue.  Looks like the loss of DVD subscribers is perhaps going faster than investors would like.  Need to do more sniffing around.


EDIT 4:20 PM – looks like Q2 subscribe add guidance is the culprit:  Sees Q2 Paid Subscriptions 22.3-22.9M versus Street estimates of 23M.

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Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). Trader Mark also authors the blog Market Montage.

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