High expectations can mean big letdowns: Morning Brief

High expectations can mean big letdowns: Morning Brief

Oops!Something went wrong.Please try again later.Oops!Something went wrong.Please try again later.Oops!Something went wrong.Please try again later.Myles Udland·AnchorApril 22, 2021, 3:08 AM·6 min readOops!Something went wrong.Please try again later.Oops!Something went wrong.Please try again later.Oops!Something went wrong.Please try again later. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. SubscribeWednesday, April 22, 2021Netflix's first quarter disappointment might be one of manyFirst quarter earnings out of Netflix (NFLX) published Tuesday night surprised investors. Shares of the streaming giant sold off in response. Netflix's business was hit in the first quarter by the twin pressures of an economic re-opening that enables people to do things other than watch Netflix while it also faces a shortfall in new content to drive sub growth as COVID hampered production schedules. "The extraordinary events of Covid-19 led to unprecedented membership growth in 2020, as it pulled forward growth from 2021, and delayed production across every region," the company said in its shareholder letter. "In turn, we ended 2020 with a bigger membership and revenue base than we would otherwise have had, contributing to record Q1'21 revenues... In Q1, paid net additions of 4m were below our 6m guidance (and the 16m net additions in the