Back in January 2022 when Netflix released their previous earnings they said the guidance for new subscribers for the Q1 2022 is estimated 2.5million.
Copying from CNBC title on 20th January:
The company said for the first quarter of 2022, it expects to add 2.5 million subscribers, compared to the 3.98 million it added in Q1 2021.
Stock drop 20% after hours on January 20th since analysts had estimated increase of 6.93 million users.
Yesterday they announced the Q1 earnings and we all saw that their own guidance was missed by quite some margin.
My question is if a publicly trader company should warn investors in advance that they are going to miss their own estimates for the upcoming quarter. (as did Epam after the war in Ukraine broke)
Sometime in mid February or beginning of March Netflix management should realise that they will never achieve the 2.5 million new subscribers they estimated just in January.
Can this be used as a class lawsuit action against Netflix by investors who bought in Q1?
Note: I never bought Netflix so I'm asking for educational purposes. I guess will see some badly missed guidances this quarter so I want to know if by law companies should report this before earnings or not.
Leave a Reply