Netflix (NASDAQ: NFLX) earnings were so poor that shares dove 13% to $69. The stock is already down from a 52-week high of $274 because of worry about competition in streaming video and the price Netflix must pay for content.
During the second quarter, the company reported a profit of $6 million, or 11 cents a share, on revenue of $889 million. During the same period a year ago, Netflix earned $1.26 a share, on sales of $788.6 million. Netflix growth rate was in the high double digits less than two years ago. Analysts surveyed by FactSet Research had forecast Netflix to earn 4 cents a share on $889.6 million in revenue for the quarter, according to MarketWatch
Carefully watched subscriber additions posted mediocre results. The company said it added 1.1 million net subscribers to its video-streaming service, giving it 27.6 million subscribers worldwide.
Netflix disappointed Wall St. as it forecast a loss in the fourth quarter.
Douglas A. McIntyre
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