Netflix, Inc. (NASDAQ: NFLX) shares are trading lower after the company reported mixed second-quarter results.
Netflix reported second-quarter earnings of $1.59 per share, which missed the analyst consensus estimate of $1.81. Netflix reported sales $6.327 billion, which beat the $6.08 billion estimate and is up 20.6% year over year.
The company sees third-quarter global streaming paid memberships at 195.45 million, up 23.4% year over year, and global streaming paid net adds at 2.5 million; The estimate called for 5.2 million additions.
The company also named 20-year Netflix veteran Ted Sarandos to the role of co-CEO alongside co-founder Reed Hastings. Sarandos was the company's content chief.
"We live in uncertain times with restrictions on what we can do socially and many people are turning to entertainment for relaxation, connection, comfort and stimulation," the company said in its shareholder letter. "In Q1 and Q2, we saw significant pull-forward of our underlying adoption leading to huge growth in the first half of this year (26 million paid net adds vs. prior year of 12 million). As a result, we expect less growth for the second half of 2020 compared to the prior year.
"As we navigate these turbulent circumstances, we’re focused on our members by continuing to improve the quality of our service and bringing new films and shows to people's screens."
Netflix's stock traded down 9.7% to $476 per share in Thursday’s after-hours session. The stock has a 52-week high of $575.37 and a 52-week low of $252.28.
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