Netflix fell more than 5%, and investors' expectations for second-quarter performance may be too high
Netflix fell more than 5% on Friday to $1,205.53. On the news front, the financial report showed that Netflix's Q2 revenue increased 15.9% year-on-year to $11.08 billion, better than analysts' general expectations of $11.06 billion. Diluted earnings per share were $7.19, better than analysts' general expectations of $7.08, and $4.88 in the same period last year. Although major financial indicators exceeded investor expectations, the company's stock price still weakened. Analysts believe that although Q2 results exceeded expectations, they failed to meet previous high expectations. The negative performance of the financial report may be partly due to the fact that most of the unexpected revenue came from foreign currency conversion, rather than the number of members or monetization, or due to limited growth in viewing time in the second quarter, although the company pointed out that there will be strong projects in the second half of the year.