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
Netflix Shares Tumble as Growth Slows Down
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)

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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