The conundrum whipsawed Netflix investors late Monday, with the stock dropping on the subscriber figures before recovering later and moving higher. The world’s biggest paid video service signed up 4.95 million new customers last quarter, fewer than the 5.49 million that analysts were expecting. Netflix needs to add millions of subscribers every quarter to help pay for the billions of dollars the company spends making TV shows and movies or licensing programs from others. Because of those expenses, Netflix said profit in the period will be 15 cents a share, short of analysts’ estimate of 23 cents. Netflix said it will spend $1 billion on marketing in 2017 to bring more attention to its shows.

Source: Washington Post April 17, 2017 21:16 UTC