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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 Chocolate on Sunday July 21 2019, @12:12PM
Okay, put like that, this action sounds insane.
Yes, if they wanted traditional stocks with profits this is probably not the company to invest in.
Maybe they thought this was the next Facebook or LinkedIn so were getting in on the ground floor with expectations of unicorn inducing profits which kind of falls apart when no miracle happens.
Rock on, Netflix.
Bit-choco-coin anyone?