American company, Netflix has reported weak results following increased prices for current subscribers which has brought about high service cancellations. Reed Hastings, Chief executive has apologized for the volatility and hopes for the best. Netflix has gained 160,000 subscribers from the U.S and 1.52 million from the international market which did not meet the expected target of 500,000 coming from the U.S. and 2 million overseas. The second quarter gains has ended with 83.18 million subscribers.
Analysts believe that investors are supposedly “missing the bigger picture” since higher revenues coming from price increases would override the negative aspect of losing several subscribers. They further stated that the blow towards stocks from Netflix can be considered as a buying opportunity during this moment where media is going through financial pressures.
Netflix revenue has surged at 28% to $2.11 billion.
The material has been provided by InstaForex Company – www.instaforex.com