Netflix Inc. (NFLX) shares dropped about 13% shortly following its second-quarter earnings release after reporting mixed top- and bottom-line results as well as subscriber growth numbers that fell below expectations.
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Netflix reported earnings of 85 cents per share vs. consensus analysts' expectations of 79 cents per share. Revenue for the period of $3.9 billion missed analysts' expectations.
More significantly, however, Wall Street expected the company to add about 1.23 million subscribers in the U.S. and 5.11 million more internationally. But the company only added 670,000 subscribers in the U.S. and 4.5 million subscribers internationally.
In addition, for the third-quarter, Netflix said it expects to add another five million subscribers globally (650,000 in the U.S. and 4.35 million international), below a consensus estimate of around six million.