While Netflix reported profit of $270 million last year, this year’s earnings are 2.6 times higher, that is $720 million. Similarly, revenue is worth mentioning. Netflix reported revenue in more than $6 billion in second quarter of 2020 compared to almost $5 billion a year ago. The growth represents increase in one fourth.
Moreover, number of new subscribers exceeded expectations. Analysts predicted increase in 8.2 million, and Netflix itself expected much lower amount – 7.5 million. It seems as paradox that the company’s stock slumped in 10% shortly after the announcement of Q1 and Q2 results.
Netflix has also published its predictions till the end of 2020, which don‘t seem that optimistic. The company expects remaining quarters to be less successful, as second quarter was mainly caused by anti-pandemic quarantine. People spend their time watching Netflix, and that’s probably not happening in the rest of the year.