Netflix Lowers 3Q Domestic Subscriber Estimates
Netflix (NASDAQ: NFLX) lowered its third quarter domestic subscriber estimates. However, it left its financial guidance unchanged. The company now has 21.8 million streaming subscribers versus 22 million prior and sees DVD subscribers of 14.2 million versus 15 million prior.
It is this fall in DVD-only subscribers that has really hurt the company, whose stock was down 10 percent to $187.25 before the bell on Thursday. This news obviously comes as a blow to Netflix, who had earlier said that it expected to end the third quarter with the same number of subscribers, if not more, as it had at the end of the second quarter.
In an open letter to its shareholders, Netflix said that, “We know our decision to split our services has upset many of our subscribers, which we don't take lightly, but we believe this split will help us make our services better for subscribers and shareholders for years to come.”
In today's pre-market trading, Shares of Netflix fell as low as $171, which is the first time shares traded below $200 since March 10.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.