Netflix Plunges 23% In After-hours As New Members Fall Short

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Netflix Inc. on Wednesday reported a third-quarter profit of $59 million, or 96 cents a share, compared with earnings of $32 million, or 52 cents a share a year ago. Revenue from video-streaming rose to $1.22 billion from $884 million in the third quarter of 2013. Analysts surveyed by FactSet had forecast Netflix to earn 92 cents a share, with total revenue, including DVD subscriptions, of $1.41 billion. Netflix fell short of its forecast of 3.69 million new streaming subscribers and added 3.02 million new members during the quarter. Netflix said it "over-forecasted" membership growth, and said new additions in the U.S. were down from a year ago due to a price increase the company recently implemented. Netflix shares fell more than 23% in after-hours trading following the release of the company's results.

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