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7/17, 11:41 PM (Source: TeleTrader)
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Netflix+2.19%

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Chart for: Netflix, Inc.

Netflix drops over 12% on low new subscriber count

Shares of Netflix Inc. plummeted more than 12% in after-hours trade on Wednesday after the company released its earnings report for the second fiscal quarter. Even though the streaming service increased its revenue by 26% on a yearly basis to $4.92 billion, the number of new users missed the analysts' expectations, as well as Netflix's own forecasts. 2.7 million accounts were added in the second three months of the year, compared to 5.45 million in the same period in 2018, and Netflix stated its aim was to reach 5 million.

"Our missed forecast was across all regions, but slightly more so in regions with price increases... While our US paid membership was essentially flat in Q2, we expect it to return to more typical growth in Q3, and are seeing that in these early weeks of Q3," the company said. "In Q3, we expect to grow by 7m paid memberships, more than the 6.1m in Q3 a year ago. Consumers around the world continue to move from linear television to internet entertainment at a remarkable rate."

Netflix dropped 12.15% in after-hours trade at 11:39 pm CET.

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