This article is more than 1 year old

Netflix and not chill

Netflix stock is in freefall after the streaming company fell well short of its own quarterly projections.

The video service says that it added just 1.7 million new members in the second quarter of 2016 [PDF], down from 3.3 million additions in last year's quarter and far worse than its earlier projection of 2.5 million. During the three months to the end of June, Netflix's net income was $41m, lower than the forecast $47m and up on the year-ago's $26m; and revenue was $1.966bn, up from the forecast $1.964bn and the year-ago's $1.48bn.

"We are growing, but not as fast as we would like or have been," Netflix said. "Disrupting a big market can be bumpy, but the opportunity ahead is as big as ever and we continue to improve every aspect of our business."

Shareholders don't seem to be so optimistic. In after-hours trading, Netflix stock was down 13.5 per cent to $85.85. ®

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