Published October 23, 2012
Shares of Netflix Inc fell sharply after the company reported subscriber additions at the lower end of its forecast for the U.S. TV and movie streaming business.
Netflix said it added 1.2 million new customers to its on-demand streaming service in the United States during the July to September period, for a total of 25.1 million.
Shares of the company fell 15 percent to $58.04 in after-hours trading, down from an earlier $68.22 close on Nasdaq.
"Subscriber numbers were lower than expected, and the guidance for full year (customers) was lower than expected too," said Arvind Bhatia, an analyst at Sterne, Agee & Leach. "The streaming numbers don't look that great."
The company posted third-quarter earnings of 13 cents per share. Revenue reached $905 million, Netflix said.