Netflix Stock Drops as CFO Warns of Slower Growth and Margins
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Netflix CFO warned of slower growth, softer margins in comments that disappointed investors and sent stock down.
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Neumann said ad tier still small and will take time to build, margins to be 18-20% vs prior peak of 21%.
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Lower margins reflect investment in ad business and crackdown on password sharing.
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Neumann said Hollywood strikes "not good for business," hopes to get back to partnerships.
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Analyst cut Q4 forecasts on weaker ARPU growth outlook, though raised FCF estimate amid strikes.