Netflix (NLFX), meantime, was under heavy selling pressure after the the streaming content and DVD rental company said it expects to increase its U.S. streaming subscriber base to a range of 26.4 million to 27.1 million in the fourth quarter, implying potential growth of 5.2-8% from its current base of 25.1 million, which came in at the low end of its outlook of 24.9 million to 25.7 million.
"While we are not growing membership as fast as in 2010, we think that over time nearly all U.S. households will be broadband households, nearly all video will be Internet video, and that as our content and member experience continue to improve faster than competitors, our long-term domestic market opportunity remains 2-3x that of linear HBO," the company said.
Netflix posted earnings of 13 cents a share on revenue of $905.1 million for the third quarter, beating Wall Street's consensus view for a profit of 4 cents a share on revenue of $904.9 million. For the fourth quarter, the company forecast between a loss of 23 cents a share and a profit of 4 cents a share vs. the current average analyst estimate for a a loss of 8 cents a share.
The stock was last quoted at $57.14, down 16.2%, on volume of 2.76 million, according to Nasdaq.com.Other stocks active in late trades included SiriusXM Radio (SIRI - Get Report), which lost more than 2% after the company said CEO Mel Karmazin plans to step down in February 2013; and iRobot (IRBT - Get Report), which dropped more than 21% after the company reported revenue that missed Wall Street's expectations in the third quarter and forecast a loss for the fourth quarter. -- Written by Michael Baron in New York.
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