Netflix action: Miss subscribers add to bearish feelings

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Netflix (NASDAQ: NFLX) The share price is struggling to generate sustainable growth amid the concerns of traders about increasing competition in the market. The impact of market competition has started to impact NFLX subscriber growth and financial numbers.

The streaming company largely missed subscriber growth in the fourth quarter. Retailers blame Disney and Apple’s entry into the streaming market for weaker-than-expected growth in subscriber numbers in the United States.

Netflix stock is currently trading at around $ 338. Although the NFLX share price has rebounded in the past two months, market analysts see a limited rise ahead. This is due to the market competition from several new players.

Daily stock chart for NFLX Netflix, Inc.

Netflix stock plunged after failed subscriber growth

Its streaming additions in the United States and Canada in the fourth quarter were around 550,000, down from the consensus estimate of 611,000 and the forecast of 589,000. Net additions in the United States reached 420K in the last quarter.

On the bright side, the company generated robust growth in international streaming additions during the fourth quarter. International streaming additions jumped 8.33 million in the fourth quarter from the forecast of 7.0 million. In addition, its streaming margin in the United States in Q4 increased to 39.3% while the international margin was around 17.1%.

Netflix stock: subscribers are lacking ...

Greenlight Capital appears bearish on Netflix’s future growth potential. The company said: “We believe this story is finally coming to an end. NFLX is no longer the only provider of low-cost streaming VOD. There are now half a dozen subscription services and over the next year or so there will be more credible entrants with deep content libraries.

Financial figures continue to improve

The company has generated robust financial growth over the years. Its fourth quarter revenue increased 27% from the previous year. In addition, he expects revenue growth in the order of 26% for the first quarter of 2020. NFLX also delivered a huge increase in profits. Its full-year operating profit jumped 62% year-over-year to $ 2.6 billion. On the negative side, the company provided subscriber additions below expectations for 2020.

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