A 15% after hours drop for Netflix is unwarranted
Post# of 102730
A 15% after hours drop for Netflix is unwarranted in my opinion. It doesn't matter what market a stock is on, its all about the investors perception and how the message is being delivered.
For instance, this article! "UPDATE 3-Netflix shares drop after it cuts subscriber forecast"
http://www.reuters.com/article/2012/10/24/net...amp;rpc=43
Read this experts advice from today. (FacePalm) lol
"Subscriber numbers were lower than expected, and the guidance for full year (customers) was lower than expected too," said Arvind Bhatia, an analyst at Sterne, Agee & Leach. "The streaming numbers don't look that great."
What would've happened if they started the article with this. 
"Quarterly profit beat Wall Street expectations. The company posted third-quarter earnings of 13 cents per share, or $8 million. Analysts on average had expected 4 cents per share, according to Thomson Reuters I/B/E/S. Revenue reached $905 million, Netflix said."
Instead they press the fact that Netflix won't hit 7 million new U.S. streaming customers and downplay what the actual % comes out to.
"When something is as new and vibrant as Internet video, it is hard to predict the rates of growth," Hastings said in an interview. The company is "very happy" with the 5 million additions, a 20 percent gain from 2011 ."
This is what really pisses me off about the 15% after hours drop , how come these underpaid Analysts aren't talking about this?
Netflix previously warned it will lose money in the fourth quarter as it spends to add service in Scandinavia, part of a costly international expansion that is hitting its bottom line. On Tuesday, it forecast a $13 million loss to a $2 million profit for the last three months of the year .
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