Netflix: Incredible Earnings But Investors Fear Slowdown

Netflix reported strong subscriber, profit, and revenue growth, but investors fear a slowdown in the second half of the year. The company added 9.3 million net global subscribers in the quarter, bringing the total to over 37 million net additions in the past year. The operating margin exceeded 28%, and management raised its full-year operating margin target to 25%. However, full-year guidance suggests a deceleration in the second half, and the decision to stop reporting subscriber numbers in 2025 supports the belief that yearly additions will be lower.