Here is why shares tanked on the results.
Netflix forecast third quarter net streaming additions of 5 million users, below Wall Street forecasts for 5.93 billion. Not what Wall Street wanted to see from a priced for perfection stock such as Netflix.
Netflix sounded more cautious on the competitive environment. The company called out rising competition from Apple (AAPL - Get Report) (key Action Alerts PLUS holding), YouTube and a soon to be combined AT&T (T - Get Report) /Time Warner (TWX) .
Netflix saw slowing user growth in the U.S. and internationally for the second straight quarter. Price increases hurting much?
Read real-time analysis of Netflix earnings on TheStreet.