Shares of Netflix plummeted this week after the internet entertainment service added fewer subscribers than it anticipated. It’s the first time in five quarters that the company misestimated its growth, reported CNBC. Shares dropped as much as 14 percent at one point on Monday. By Tuesday morning, shares were down 11 percent.
Its second-quarter earnings reveal Netflix projected an addition of 6.2 million members, one million more than actually came on board. Membership growth was actually 5.2 million, the same as the second quarter of 2017. Netflix added about 4.5 million subscribers worldwide—640,000 less than projected.
“We had a strong but not stellar Q2, ending with 130 million memberships,” the company said in a release.
Overall, the company projected $3.94 billion in revenue, but it amounted to $3.91 billion, according to a Thomson Reuters consensus estimate. Domestic subscriber additions were estimated at 1.23 million—half a million more than actually subscribed, according to FactSet and Street Account.
There is some fear that Netflix’s stocks will be unable to maintain its growth, which has increased 100 percent year to date. The streaming service is also facing stiff competition from companies such as Amazon and others like Disney and AT&T, which are planning on developing additional digital content. Netflix is predicted to invest up to $8 billion on hundreds of new original programs.
As for the third quarter, Netflix anticipates adding 5 million new subscribers versus analyst estimates of 6 million (650,000 in the United States and 4.35 million worldwide).
In its report, Netflix highlighted some of its popular programming: the debut of Lost in Space(which it has renewed for a second season), and second seasons of shows such as 13 Reasons Why, Marvel’s Jessica Jones, Marvel’s Luke Cage, and GLOW. The company plans on churning out a series of non-English original series.
Netflix received more Emmy nominations this year than any other network. The service received 112 nominations for 40 different series, movies, documentaries, talk shows, and comedy specials.
