Netflix draws in crowds but shares take hit
Published 24/07/2013 | 05:00
Quirky comedy 'Arrested Development' lured new subscribers to Netflix's streaming service in the second quarter, but not enough to impress investors who sent its shares tumbling.
'Arrested Development', which Netflix dusted off seven years after it last ran on Fox, generated "a small but noticeable bump in membership", Netflix chief executive Reed Hastings and chief financial officer David Wells told shareholders. Netflix, which began selling its TV service here in Ireland last year, said it added 630,000 streaming customers in the United States in the quarter, hitting the middle of a forecast the company issued in April.
Wall Street analysts were unimpressed after the market sent the company's share price up 183pc this year, the biggest gainer on the S&P 500 index, in reaction to buzz about shows such as 'Arrested Development' and 'House of Cards'.
"It was a good quarter, but not good enough," said Sterne Agee analyst Arvind Bhatia. "The stock had run up too much, too quickly."