Netflix (NFLX) Shares Crumble After Q2 Results

Netflix tumbled 15% after the company reported disappointing numbers for the second quarter.

The company reported revenue of $1.2 billion which was in line with guidance and earnings per share of $0.09 beat expectations. Guidance on earnings per share for the coming quarter was seen as disappointing, at $0.05 versus $0.08.

Subscriber growth came in drearily under expectations. Netflix had added only 160,000 domestic subscribers in the second quarter, which was way under the already reduced guidance of 500,000. The company added 1.5 million international subscribers, compared with guidance of 2 million.

Going into the third quarter, Netflix has said it now expects 300,000 domestic subscriber additions. This is compared to expectations for 750,000 to 800,000. It expects 2 million international subscribers, compared with 2.7 to 2.85 million subscribers expected.

“We are growing, but not as fast as we would like or have been,” commented management. “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.”

Netflix has doubled the number of shows it’s offering in 2016 from 16 in 2015 to 31.

Shares were down 14% going into the close before the company released their Q2 results.

Disclaimer: We have no position in Netflix, Inc. (NASDAQ: NFLX) and have not been compensated for this article.