Netflix is set to lose $17 billion off its market cap after suffering a rare decline in US subscribers

stranger things

  • Shares in Netflix tanked by 11% in pre-market trading on Thursday after it reported its first decline in US subscribers since 2011.
  • The company's US paid-subscriber base shrunk by 130,000, badly missing conservative estimates of 309,240 domestic additions.
  • Netflix gained 2.7 million worldwide subscribers in the second quarter, well below its forecast of 5 million additions.
  • Subscriber growth in international markets has become an increasingly important metric for the company.
  • Watch Netflix trade live.

Netflix stock plunged 11% in pre-market trading on Thursday after the tech giant reported its first decline in US subscribers since 2011.

The company's US paid-subscriber base shrunk by 130,000 in the second quarter, badly missing Wall Street's expectations of 309,240 additions. Its worldwide subscriber count increased by 2.7 million, falling short of its 5 million estimate. Netflix added 5.5 million subscribers during the same period last year, and expects to sign up 7 million subscribers in the third quarter of 2019.

"Our missed forecast was across all regions, but slightly more so in regions with price increases," the company wrote in a letter to shareholders. "We think Q2's content slate drove less growth in paid net adds than we anticipated."

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Netflix's recent offerings include the third season of "Stranger Things," which has garnered over 40 million views, the company said.

The company reported earnings per share of $0.60 beating expectations of $0.56. Revenue also grew to $4.92 billion, falling just short of the $4.93 billion target from Wall Street.

Netflix shares were up more than 35% year-to-date through Wednesday's close.

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