Why Netflix Shares Are Diving Today

Netflix Inc (NASDAQ:NFLX) is trading lower Friday morning after the company announced its fourth-quarter financial results and issued guidance below estimates.

Netflix reported quarterly earnings of $1.33 per share, which beat the estimate of 82 cents per share. The company reported quarterly revenue of $7.71 billion, which came in slightly below estimates.

"Even in a world of uncertainty and increasing competition, we’re optimistic about our long-term growth prospects as streaming supplants linear entertainment around the world," Netflix said.

The streaming company expects first-quarter earnings of $2.86 per share, which is below the estimate of $3.45 per share. Netflix expects first-quarter revenue of $7.903 billion versus the estimate of $8.08 billion.

Related Link: Netflix Falls On Q4 Earnings Results: Here's Why And What Investors Need To Know

Analyst Assessment: Several analyst firms downgraded the stock following Netflix's quarterly results:

NFLX Price Action: Netflix shares are making new 52-week lows.

The stock was down 19.6% at $408.90 at time of publication.

Photo: afra32 from Pixabay.

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