Netflix Stock Down 10 Percent Monday
Netflix stock fell 10 percent in after-hours trading Monday, after the company announced a subscriber growth slowdown in light of its recent price increases, The Associated Press reported.
The company had previously announced it was splitting up its streaming on-demand and DVD-by-mail services, raising prices to $10 or more for subscribers who want to keep both. Subscribers will pay $8 per individual service.
In a second-quarter earnings report released Monday, Netflix said it expected to add anywhere between 190,000 and 1.29 million subscribers in the current quarter. Netflix added nearly 2 million subscribers In last year's third quarter.
Netflix reported earnings of $68 million, or $1.26 per share, in the April-June period, in an increase of 80 cents per share, or 57 percent over last year. Revenue increased 52 percent, from last year's $789 million.