We at investorAi have been around long enough to know that when companies start a course of non-disclosure of numbers it is usually a harbinger of (not good) things to come. Wall Street seems to be agreeing with us.
Netflix's decision to cease reporting subscriber numbers caused its stock to drop by as much as 9% on Friday (
NFLX). This news came alongside the company's first-quarter earnings report, breaking a tradition in an industry where subscriber growth has always been a key performance indicator.
In addition to subscriber figures, Netflix will also stop disclosing its average revenue per member (ARM), a crucial profitability metric.
Despite beating expectations for first-quarter earnings, disappointing revenue forecasts for Q2 and the full year cast a shadow over the results. This, combined with the decision to stop reporting members ...
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