Netflix Stock Bombs After Critical Miscalculation

Company vastly overestimated subscriber growth, says Q2 was 'strong but not stellar'
By Rob Quinn,  Newser Staff
Posted Jul 17, 2018 3:55 AM CDT
Updated Jul 17, 2018 4:47 AM CDT
This image released by Netflix shows Mike Colter in a scene from "Marvel's Luke Cage," which premiered its second season on June 22.   (Myles Aronowitz/Netflix via AP)
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(Newser) – Netflix's share price, which had more than doubled since the start of the year, tumbled Monday after the company admitted that subscriber growth is beginning to slow down. In a letter to shareholders, the company said subscriber growth between April and June had been 5.2 million—1 million below its prediction, CBS News reports. The company said it had "over-forecasted" subscriber numbers in the "strong but not stellar" quarter, reports Reuters. Shares dived nearly 14% in after-hours trading following the letter, wiping around $25 billion from the company's market valuation. (The company's top spokesman was fired last month for his "insensitive" use of a racial slur when discussing comedy.)

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