Netflix shares plunge in after-hours trade after forecast miss

Marco Green
July 17, 2018

The news of just 5.2 million total subscriber adds was especially pointed for Wall Street given Netflix's addition of 7.4 million in the first quarter, well ahead of the 6.5 million projected then.

Although Netflix fell short with subscribers, its shows remain critical hits. This sent Netflix shares tumbling 12.6% (at time of this posting) in after-hours trading.

Almost $23 billion was wiped off the value of Netflix last night after it missed subscriber growth and revenue forecasts for the second quarter.

Well to many adding 4.47 million subscribers and hitting a new all-time high in subscribers sounds great to wall street they wanted to see a higher subscriber count. That comes out to 4.87 million new subscribers for the quarter, far below the 6.2 million Netflix was hoping for. Nonetheless, it's not all doom and gloom for Netflix.

Analysts had been modeling $3.94 billion in revenue and EPS of 79 cents.

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"This isn't entirely surprising given rising competition in the video streaming market, where Amazon, Hulu, HBO and others are gaining share of subscription video dollars at Netflix's expense", he added.

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