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from the drawbacks-of-being-a-public-company dept.
The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Netflix, Inc. ("Netflix" or "the Company") (NASDAQ: NFLX) for violations of ยงยง10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Netflix announced its second quarter 2019 earnings on July 17, 2019. During the Company's earnings call, as well as in its shareholder letter, it was revealed that Netflix gained only 2.7 million new subscribers against a forecast of 5 million new subscribers. Based on this startling news, shares of Netflix dropped by more than 13% over the next two days.
https://www.businesswire.com/news/home/20190719005440/en/
(Score: 2) by AthanasiusKircher on Sunday July 21 2019, @05:26AM
(Oh, and just to be clear -- yes, I do realize that Netflix had a net loss of subscribers in the U.S., and only gained globally. But contrary to some people's belief: (1) the U.S. is not the only thing that matters, and (2) Netflix introduced strategic price hikes in the U.S. which were designed to bring in more revenue to fund more original content, and it's pretty reasonable to expect some people to cancel when the price goes up. I"m not a huge Netflix defender, by the way -- I rather liked its streaming lineup better when they focused on more obscure and older films as they did in the early days of their streaming -- I just find it bizarre that people are seeing the "endtimes" in a company that is both increasing profit and overall subscribers.)