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MarketWatch First Take: Netflix is ditching freeloaders from subscriber forecasts after volatile stock moves

After two consecutive quarters of missing the mark on its own forecasts for subscriber growth, Netflix Inc. hopes to put an end to the big swings in its stock with some changes in its accounting.

In kicking off tech’s earnings season Tuesday, Netflix NFLX, +3.98%reported better-than-expected subscriber growth in the quarter, leading to an 11% jump in its shares in after-hours trading. Three months ago, Netflix reported weaker-than-expected subscriber growth, sending its stock tumbling around 12% in the next trading day.

From last quarter: Is Netflix stock falling down a mountain, or just tripping over a molehill?

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