MarketFoolery: 10.25.2011
MarketFoolery
The Motley Fool
4.7 • 1.7K Ratings
🗓️ 25 October 2011
⏱️ 18 minutes
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Summary
Shares of Netflix tumble after the company reports worse-than-expected subscriber loss. Shares of Under Armour rise on better-than-expected earnings. And 3M reports weaker-than-expected earnings and warns of weakening consumer demand.
Transcript
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| 0:00.0 | It's Tuesday October 25th and this is market foolery. |
| 0:05.0 | I'm Chris Ellen joining me in studio today from Motleyville Stock Advisor Andy Cross, |
| 0:08.6 | for Motley Full Hidden Gems, Charlie Travers, and from Motley Fool Inside Value, Joe Meger. |
| 0:13.4 | Guys, good to see you. |
| 0:14.8 | Chris, hi Chris. |
| 0:15.8 | We have earnings from 3M and Under Armour, but first shares of Netflix down huge today |
| 0:21.8 | on very heavy trading. This comes after Monday's earnings |
| 0:25.3 | announcement. The company lost 800,000 subscribers in the most recent quarter |
| 0:29.7 | and warned of more subscribers leaving as well as rising costs. |
| 0:35.1 | There's a lot to talk about here. |
| 0:36.5 | Andy, it's a long time recommendation of stock advisor. |
| 0:41.1 | Let's just deal with the most recent quarter. What did you make of it? |
| 0:44.0 | Yeah, it was a brutal quarter, Chris. I mean, not horribly unexpected, but it's been like a horror film |
| 0:49.2 | the last three months here for Netflix. I mean, we've had this really bizarre and ill-timed |
| 0:54.9 | and ill-executed marketing campaign with price increases, changing the |
| 0:59.5 | service that Reed Hastings put in Quicksers on, Quicksters off, and that all has led to this a loss of net |
| 1:07.7 | subscribers more than expected and the stock just has taken a beating today and for the last three months frankly it's down 70%. |
| 1:16.5 | I mean that's just a loss of extremely amount of value for a subscriber or for shareholders. |
| 1:21.1 | Now there are maybe some some |
| 1:23.0 | slight silver linings to the story is that their gross additions are up. Their |
| 1:28.0 | weekly net loss of subscribers is slowing and the international expansion while |
| 1:34.8 | expensive and will cause the loss for the first few quarters of next year |
... |
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