John123
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John123 in Gainers & Losers,

Netflix tumbled 14.5% on missed subscription additions expectations

Netflix Inc's (NFLX) U.S. and international subscription additions in the second quarter fell short of analysts' expectations as price hikes for its video streaming service put off customers.

The company said on Monday it added 1.52 million subscribers in its international markets, compared with the average analyst estimate of 2.1 million.

Netflix, whose popular original shows include "Orange is the New Black" and "House of Cards", said it added 160,000 subscribers in the United States in the quarter, compared with the estimate of 532,000, according to research firm FactSet StreetAccount.

The company had forecast in April that subscriptions would increase by 500,000 in the United States and 2 million internationally in the second quarter.

Total streaming revenue rose to $1.97 billion in the second quarter from $1.48 billion a year earlier.

After the market closed, Netflix shares tumbled 14.5%.

Probably, stellar growth of Netflix new subscriptions is already indeed in the past, but streaming revenue figures are brilliant. IMHO, 14.5% plunge is overdone. We should see a bounce.