Netflix shares tumble after missing subscriber target

The L.A. Times reports:

Shares in Netflix fell sharply in after-hours trading on Monday after the streaming giant reported slower than expected subscriber growth in the second quarter.

Netflix added 1.7 million subscribers worldwide, well below the 2.5 million subscribers the company predicted it would add in the three-month period ending June 30. Netflix rolled out a new season of “Orange Is the New Black” and a second Adam Sandler film (“The Do Over”) during the quarter.

The Los Gatos, Calif. company posted second-quarter earnings of $41 million, or 9 cents a share, beating analysts’ expectations of 3 cents a share for the quarter. Revenue during the quarter climbed to $2.1 billion, up from $1.6 billion from the same period a year ago.

Nonetheless, the slower than expected subscriber growth sent shares in Netflix tumbling by $14.60, or 15%, to $83.30 in after-hours trading. Shares had closed Monday at $98.81, down less than 1%.

Netflix said it added 160,000 subscribers in the U.S. during the quarter, below the 500,000 it had predicted. New international subscribers, meanwhile, totaled 1.5 million, compared with the 2 million that had been forecast.

Expectations.