Netflix shares plunge as growth in subscriber numbers slows
NETFLIX shares fell 14 per cent in extended trading on Monday, after the company reported slowing growth in subscriber numbers.
The company gained 5.1 million subscribers worldwide during the April-June quarter, more than one million below the number that management had believed it could.
It marked the first time in a more than a year that Netflix had not exceeded its subscriber growth projections.
As of June 30, Netflix had 130 million subscribers, including 57.4 million in the US.
It has renewed fears that its growth may sputter as the video streaming service tries to fend off fiercer competition.
The numbers released on Monday are a rare letdown for a company that has enthralled investors with its ability to consistently top expectations.
But Netflix missed its target badly in the April-June period, causing its high-flying stock to plummet by about 14 per cent to 345.63 US dollars (£261.049) in extended trading.