Are Netflix’s woes a warning for ASX tech shares?

You might have missed it, but yesterday, the US tech giant Netflix Inc (NASDAQ: NFLX) reported its quarterly earnings for the 3 months ending 31 March 2021.

It was quite a surprising result for a number of reasons. Firstly, despite its gargantuan US$225 billion market capitalisation, Netflix has long been priced as a growth company. Until yesterday’s report, Netflix had boasted a price-to-earnings (P/E) ratio of over 90.

That’s why it was a surprise to hear that Netflix had only added 4 million new subscribers over the quarter. Now that’s still a massive number to be sure. But it pales against the 16 million the company added over the same quarter last year. In other words, we have a big slowdown here. What was even more…