Show an ad over header. AMP  

Netflix's stock was down more than 5% in after-hours trading Tuesday after the tech giant reported that it missed expectations on global subscriber growth for the quarter.

Why it matters: Netflix experienced explosive growth during the first half of the year. It wasn't expected to match that growth this quarter, when lockdowns lifted and after new competitive services had launched, but analysts were still expecting it to meet expectations of at least 3.3 million net new global subscribers.

  • Netflix's stock ticked up ahead of earnings on Tuesday in anticipation of good news.

Details: The company met Wall Street estimates for its bottom line, but missed on earnings per share, suggesting that it spent more money on marketing and content relative to its subscriber revenues than investors had hoped.

  • In a letter to shareholders, Netflix said that the pandemic and its impact "continues to make projections very uncertain, but as the world hopefully recovers in 2021, we would expect that our growth will revert back to levels similar to pre-COVID."
  • It also said that it expects paid net subscriber additions to be down year-over -ear in the first half of 2021 as compared to the unprecedented spike in subscribers in the first half of 2020.

By the numbers, per CNBC:

  • Earnings per share (EPS): $1.74 vs $2.14 expected, according to Refinitiv consensus estimate
  • Revenue: $6.44 billion vs $6.38 billion expected, according to Refinitiv
  • Global paid net subscriber additions: 2.2 million vs. 3.57 million expected, according to FactSet

What's next: The company forecasts it will add 6 million paid net subscribers globally next quarter, bringing its total global paid subscriber count to over 200 million.

  • That's still fewer new subscribers than the number Netflix brought in Q4 last year, but the company is still dealing with the fallout of the pandemic, which has made it harder to produce new content.

Go deeper ... Netflix's earnings over the past year:

Transcripts show George Floyd told police "I can't breathe" over 20 times

Section2

Newly released transcripts of bodycam footage from the Minneapolis Police Department show that George Floyd told officers he could not breathe more than 20 times in the moments leading up to his death.

Why it matters: Floyd's killing sparked a national wave of Black Lives Matter protests and an ongoing reckoning over systemic racism in the United States. The transcripts "offer one the most thorough and dramatic accounts" before Floyd's death, The New York Times writes.

The state of play: The transcripts were released as former officer Thomas Lane seeks to have the charges that he aided in Floyd's death thrown out in court, per the Times. He is one of four officers who have been charged.

  • The filings also include a 60-page transcript of an interview with Lane. He said he "felt maybe that something was going on" when asked if he believed that Floyd was having a medical emergency at the time.

What the transcripts say:

  • Floyd told the officers he was claustrophobic as they tried to get him into the squad car.
  • The transcripts also show Floyd saying, "Momma, I love you. Tell my kids I love them. I'm dead."
  • Former officer Derek Chauvin, who had his knee on Floyd's neck for over eight minutes, told Floyd, "Then stop talking, stop yelling, it takes a heck of a lot of oxygen to talk."

Read the transcripts via DocumentCloud.