
Netflix (NFLX) Stock Tanks in After-Hours Trading on Subscriber Growth, Q3 Outlook
NEW YORK (TheStreet) -- Shares of Netflix (NFLX) - Get Report are tumbling 15.16% to $83.83 in after-hours trading Monday after the Internet streaming service posted disappointing subscriber growth and a downbeat outlook for the third quarter.
After today's closing bell, the Los Gatos, CA-based company said it added 1.7 million members during the 2016 second quarter, below its own expectations of 2.5 million.
The company added 160,000 memberships domestically in the U.S. and 1.52 million abroad, CNBC.com noted.
"We are growing, but not as fast as we would like or have been. 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," CEO Reed Hastings said in a shareholder letter.
Additionally, the company expects to report earnings of 5 cents per share for the third quarter, while Wall Street is expecting 8 cents per share.
Earnings of 9 cents per share topped analysts' expectations of 2 cents per share. But revenue for the second quarter was $1.97 billion, below analysts' forecasts of $2.11 billion.
About 17.36 million of Netflix's shares were traded today compared to its average 30-day volume of 11.04 million shares per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and increase in net income.
But the team also finds weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: NFLX










