Netflix’s usually high-flying shares fall after it misses subscriber growth target
Los Angeles/Bengaluru — Netflix’s subscriber growth fell short of Wall Street expectations on Monday, sending shares of the normally high-flying stock down 14% on fears that the company’s rapid expansion is slowing. The streaming video pioneer added 5.2-million customers from April to end-June, 1-million fewer than forecasts from Thomson Reuters I/B/E/S, as it added new programming including Lost in Space and new episodes of Marvel’s Jessica Jones and 13 Reasons Why. "We had a strong but not stellar [second quarter]," Netflix said in a quarterly letter to shareholders. Netflix said it had "over-forecasted" quarterly fluctuations in the pace of new customers. The company noted that it had underestimated subscribers for seven of the past 10 quarters. Before the earnings report, Netflix shares had gained 109%, making it the second-strongest performer on the S&P 500 index. In after-hours trading on Monday, Netflix shares sunk 14% to $343.60, eroding $24.2bn in market capitalisation and ...
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