Netflix Tumbles

Shares of Netflix

are extending their losses in the after-market trade, touching a low near $85.00. Currently, shares are off 27.63%, trading at $86.00. This comes moments after the company reported Q3 earnings results that beat expectations. The real issue is with Netflix's guidance, which predicted current quarter earnings in the range of $0.36-0.70 on revenues of $841-875 million. The Street was looking for $1.08 per share on $920 million in revenue. Ouch. The company's churn rate, a measure of customer cancellations net of new subscribers, increased to 6.3%, up from 3.8% last year and 4.2% last quarter. Netflix ended the quarter with 21.5 million U.S. streaming subscribers and 13.9 million U.S. DVD subscribers. Much of the company's woes stems from a decision earlier in the year to effectively raise prices to new and existing customers by 60%. In other commendable management decisions, the company also reported that it repurchased $30 million of stock at a cost basis of $218. Netflix, Inc. is an Internet subscription service streaming television shows and movies. The Company's subscribers can watch unlimited television shows and movies streamed over the Internet to their televisions, computers and mobile devices and in the United States, subscribers can also receive digital versatile discs delivered to their homes.