Netflix shares plunge as subscriber growth stalls

July 17, 2018 - Streaming video service leader Netflix saw its stock plummet after expected subscriber additions fell short in the second quarter of 2018. The streaming service added nearly 5.2 million new subscribers during the April-June period, more than 1 million short of the 6.2 million it had forecast.

Related Graphics

View More

Russia growth set to outpace advanced economies

iPhone sales slump despite booming smartphone market

Oil could reach $100 a barrel for first time in years

Titanic “door” prop sells for $718,750

Baltimore port closure will hit supply chains hard

India’s wealth gap widens

British luxury cars are still being imported by Russia

Apple forced to reduce app commission under EU law

United States to target TikTok with new legislation

Bitcoin hits record high of more than $69,000

The most popular box office draws over the years

Huawei outsells the iPhone in China

Movie memorabilia auction to sell second C-3PO head

AI boom quadruples Nvidia value in just one year

WTO reforms plagued by obstacles

China’s homegrown passenger jet

Xbox to test four exclusive games on rival consoles

Bitcoin bounces back after scandals and crash

China’s Belt and Road loans

Netflix posts best subscriber growth since pandemic

China’s population decline accelerates

Apple is now the world’s biggest phone manufacturer

Increase in extreme wealth

Netflix cuts production in quality not quantity drive

Blue economy under threat

Mutual fund cuts X/Twitter value by 72%

India-Russia oil imports at lowest level for a year

How large would a “Warner-Paramount” merger be?

SpaceX leads the field in commercial space flight

China’s deepening housing crisis hits middle class

It marked the first time in a more than a year that Netflix hadn't exceeded its subscriber growth projections. As of June 30, Netflix had 130 million subscribers, including 57.4 million in the U.S.

Despite its second-quarter misfire on subscriber growth, the company reported earnings that beat analyst estimates. Earnings grew 32 per cent from last year to $384 million, or 85 cents per share. Revenue climbed 6 per cent to $3.9 billion.

Bringing in more subscribers and money is vital for Netflix because it expects to keep spending more on exclusive TV shows and movies to try to stand out from rivals. The company will spend as much as $8 billion on programming this year.

Netflix is battling challenges from Amazon, Google's YouTube and Hulu in the video streaming market, and is likely to face even stiffer competition as other formidable rivals try to muscle in.