Netflix Stock Loses More Than 10 Percent of its Value

Netflix stock was down as much as 14 percent yesterday and was off 11 percent in early morning trading, mainly due to the company falling short of both revenue and subscriber projections.

While the company fell slightly short in revenue, it was the huge gap between estimated new subscribers and actual additions that had investors running for the exits. Netflix added 5.15 million subscribers, about one million less than they had predicted.

CNBC reported these figures: 

Revenue: $3.91 billion vs. $3.94 billion estimated, according to a Thomson Reuters consensus estimate.

Domestic subscriber additions: 674,000 vs. 1.23 million subscribers estimated, per FactSet and Street Account

International subscriber additions: 4.47 million subscribers vs. 5.11 million subscribers estimated, per FactSet and Street Account

Earnings per share (EPS): 85 cents (including $85 million in non-cash unrealized gain). It was not immediately clear if Netflix’s reported EPS was comparable with a Thomson Reuters consensus estimate of 79 cents.

Amazon, Disney, and AT&T are all investing heavily in digital content and are expected to compete for Netflix subscribers, which has some investors uncertain about the continued long term growth of Netflix.

All providers are hoping to have much more original programming in the next few years, so it might be the right time to pitch that reality show about you and your crazy college roommates.