Netflix’s reputation as well as performance on the stock market has been exceptional. Over the past few years, it has grown in both assets as well as popularity amongst the masses and more and more people have invested in the company expecting great returns.

Last Tuesday, the TV company’s shares fell. The company had seen upward trends and had met expectations in the last quarter. Most of the results lay within the upward and downward bounds.

However, the company’s representatives commented at a drop of 45% in the new quarter with a 55% per share increase in profit. This is below the target of $1 which was portrayed by analysts in the last few months. The overall revenue expectation of Netflix was set at $4.96 billion but the company has lost 30 million and has ended up with $4.93 billion in revenues. The overall stock lost 1.7% in the later hours where trading continued. The earnings report, however, showed Netflix with a boost of 3%.

All of this has been confusing for investors who understood only that they were going to see an increase in returns. Netflix didn’t even put out accurate predictions as well. They forecasted that their earnings per share (EPS) will end up at $0.76 on $4.52 billion while the reality was different. Analysts on Tuesday now estimate the EPS to be $0.57 on revenue. This value was taken out at a revenue of $4.5 billion.

The company’s great increases in the subscription have been impressive and that is the reason why many investors took to investing in the company in the first place. The company had increased its net subscribers to 9.6 million in the last quarter and the recent one saw an increase of net subscribers to 11.4 million. Before these two quarters, the net subscribers had topped at 8.8 million. The majority of the subscriptions are from the US because users can avail of the services very easily and at affordable prices.

The policy that has recently affected Netflix is the recent price increase in the US because of an increase in taxes. The company’s net subscriptions would then decrease by 5 million which is a huge drop and has all the alarm bells sounding for them. Let’s hope the company can find its way around this fall in profits in the coming quarter.