Stock Market Today, Oct. 21: Netflix Cuts Ad Revenue Guidance, Stock Slides 5%
Netflix (NASDAQ:NFLX), a global subscription streaming, advertising, and digital entertainment platform, closed at $65.04, down 5.31%. The stock fell after Netflix reported weaker Q4 revenue and weaker ad sales guidance; investors are watching ad growth and next-quarter guidance. Trading volume reached 96.6M shares, coming in about 171% above its three-month average of 35.6M shares. Netflix IPO’d in 2002 and has grown 54,263% since going public.
The S&P 500 (SNPINDEX:^GSPC) closed at 7,758, up 0.59%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) finished at 26,703, up 1.05%. Among entertainment streaming, subscription video, advertising, and digital media services peers, Walt Disney (NYSE:DIS) closed at $111.83, up 0.14%, and Comcast (NASDAQ:CMCSA) closed at $22.08, down 1.25%, highlighting a mixed media tone.
It was a truly mixed Q3 earnings call for Netflix. While its advertising sales are projected to grow over 80% from last year, new guidance of $2.7 billion in ad revenue for the year is 10% below its previous outlook of $3 billion.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.