Netflix, Inc.(NASDAQ:NFLX) shares are beaten down by 15% in the opening session as the company once again spooked investors by trimming its subscribers addition target for the year after the company reported that it added 1.2 million net streaming subscribers in the U.S., near to its lower end target of 1 million to 1.8 million.
The company which has been struggling to gain confidence after last year’s pricing mess, said that now it expects to add 4.7 million and 5.4 million U.S. streaming subscriber this year, well below from its past guidance of 7 million domestic streaming subscribers.
Growing streaming subscribers in the U.S. is crucial to Netflix because the number of DVD-by-mail subscribers continues to fall and its losses internationally are mounting. Last week, it added streaming service in Sweden, Denmark, Norway and Finland.
However, the company reported above estimates earnings with EPS of 13 cents on revenue of $905.1 million compared to analysts’ target of 8 cents on revenue of $905 million.
Facebook Inc(NASDAQ:FB) shares soared 22% as the company has finally laid to rest the fears of those who were doubting the ability of the company to monetize its mobile subscriber base.
The company on Tuesday announced its quarterly results which showed that advertising revenues from mobile devices rose faster than expected and now contributes about 14 percent to its overall ad revenues.
This translates into revenues of $150 million in absolute numbers, a big jump from the $40 million to $50 million in the second quarter while in the first quarter it was zero.
Founder and Chief executive Mark Zuckerberg said that mobile was the most misunderstood part of the company.
Yelp Inc(NYSE:YELP) also jumped 12.30% in the opening session in Wednesday’s session after the company pre announced its revenue for the third quarter, which topped analysts’ target.
The company projects top report revenue of $36.4 million in its Nov. 1 earnings announcement, ahead of analysts’ estimate of $35.8 million.
Separately, the company announced to acquire Qype, Europe's largest local reviews site, in a cash-and-stock deal worth about $50 million. Tom White of Macquarie said the deal "should help Yelp accelerate its expansion into Europe" in a note to clients.