Netflix gave a solid earnings report, but why is the stock price falling down instead of going up? Netflix (NFLX) reported strong earnings per share of $0.49 or 345% higher than the prior-year quarter’s $0.11 per share. They met 2nd quarter 2013 expectations on revenues and beat expectations on earnings per share. Compared to the same quarter last year, revenue expanded significantly. As I said, “Why is the stock price falling instead of going up?” Well from showings Netflix has lost about 800,000 subscribers as prices steadily grew in. The outlook suggests Netflix has been unable to contain a subscriber over a price increase and aborted plan to force subscribers into separate streaming and DVD services.
In class we learnt about customer relationships and how it is put into two different categories Physical and Mobile. Netflix has been too careless of taking care of their customers, which led to downfall of subscribers. Because Netflix is more of a internet wise company sure it would be harder to control their subscriber count on a level they would like. If they could just maintain a healthy customer service with a affordable price Netflix will have no problem having higher earning reports.
http://mashable.com/2011/10/24/netflix-stock-earnings/
http://www.markettiminguniversity.com/stock-market-news-why-is-netflix-stock-going-down/
http://bizblog.cosmobc.com/2012/12/07/reasons-netflix-merge-amazon/
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