Netflix, Inc. stock plunges on subscriber whiff

Netflix, Inc. (Nasdaq: NFLX) reported second-quarter earnings after the bell on Monday, and shareholders were shocked by the disappointing results. Netflix stock immediately plunged more than 12 percent in after-hours trading.

The popular streaming video platform beat on earnings and barely missed on revenue. The real shocker was unimpressive subscriber growth: worldwide subscribers grew by 5.15 million; the company itself had projected 6.2 million net additions, while analysts surveyed by FactSet expected 6.37 million additions.

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Earnings per share came in at 85 cents; analysts were expecting Netflix EPS to come in at 79 cents in the second quarter. Revenue rose 40.3 percent to $3.91 billion. Analysts were expecting revenue of $3.94 billion.

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Heading into Netflix earnings on Monday, NFLX stock was one of the hottest in the market, soaring 106 percent in 2018 and 150 percent in the last year. After a quarter like this, shareholders may have to wait a while before shares again return to all-time high territory.

Copyright 2017 U.S. News & World Report

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