Netflix shares slip; five charts that break down its earnings

Netflix Inc. (NFLX.O) shares fell nearly 3% on Wednesday after the streaming pioneer estimated current-quarter revenue and profit below Wall Street projections due to a password sharing solution delay.

Paid sharing will start globally, including in the U.S., between April and June. Canada, where it has cracked down on password sharing, saw membership increase in the first quarter.

Analysts expect knee-jerk churn and near-term profitability worries, but the move could pay off.

“The next few months will likely be noisy as paid sharing headline risk grows louder, but we’d be buyers of related pullbacks,” J.P.Morgan analyst Doug Anmuth said.

Netflix’s first quarter in five charts