Netflix shares take a hit

NETFLIX has fallen well short of subscriber growth targets for the second quarter of 2018 – sending the streamer’s US stock down more than 14 per cent in after-hours trading on fears its pace of expansion is slowing down.

On Monday the company reported 670,000 streaming net adds domestically and 4.47 million internationally.

Wall Street analysts had expected 1.23 million net adds in the US and 5.11 million overseas for the period, slightly higher than Netflix’s prior guidance.

“We had a strong but not stellar Q2,” Netflix executives wrong in their quarterly letter to shareholders. “This Q2, we over-forecasted global net additions ... as acquisition growth was slightly lower than we projected.” Netflix also provided third quarter guidance that was below analyst forecasts.