We are investigating Netflix, Inc. (NFLX) (“Netflix” or the “Company”) for potential violations of the federal securities laws.
On July 17, 2019, post-market, Netflix released a letter to shareholders which revealed that Netflix missed its expected target for number of new subscribers and lost 126,000 subscribers in the United States during the second quarter of 2019. Also on July 17, 2019, Netflix held an earnings call to discuss its financial and operating results for the quarter. During the earnings call, the Company’s Chief Financial Officer attributed the missed subscription target to the “timing of [Netflix’s] content slate” and price increases. On this news, Netflix’s stock price fell $47.34 per share, or over 13%, over the following two trading sessions, closing at $315.10 per share on July 19, 2019.