Netflix cautious on subscriber growth, shares plunge |
| Reuters - Jul 24, 2012 |
Netflix Inc (NFLX.O) warned on Tuesday it may have trouble reaching its year-end target for new subscribers, an outlook that disappointed Wall Street and sent the video rental company's shares down nearly 16 percent.
For the second quarter, Netflix returned to profit and reported earnings of 11 cents a share, beating analysts' expectations of 5 cents. Its $8-a-month TV and movie streaming service added 530,000 new U.S. customers.
But the company, whose red-hot growth had once made it a Wall Street darling, said the Olympic games would compete for consumers' time and likely hurt its ability to sign new customers this quarter, when it expects to add 1 million to 1.8 million subscribers.
If Netflix misses the top of that range, it will be "challenging" to reach the company's goal of 7 million new U.S. streaming subscribers for all of 2012, CEO Reed Hastings and CFO David Wells said in a quarterly letter to shareholders.
Read Full Article from Reuters
- Posted: 2012-07-24 23:10:34
| More Stock Investor Place Company News |
 |
|
|
|
| Stock Investor Place Company News Archive |
|
|
|
