Netflix had an average of 124.4 million paying subscribers in the quarter, up from 118.9 million in the first quarter but below its guidance of 125 million.
Reuters/Mike BlakeNetflix CEO Reed Hastings' company will be reporting its second-quarter results Monday afternoon.
Netflix expects third quarter revenue to be $3.99 billion U.S. and new subscription adds of five million, compared with 5.3 million in the same quarter past year. The company added 700,000 domestic subscribers during Q2, along with 4.5 million overseas, missing company and analyst estimates on both fronts. Netflix fell short of its forecasts a couple years ago, a shortfall the company blamed at the time on the transition to chip-based credit cards.
But Netflix missed its target badly in the April-June period, causing its high-flying stock to plummet by about 14 percent to $345.63 in extended trading.
They're also anxious about the amount of cash Netflix might spend this year - up to $4 billion by J.P. Morgan estimates - and the pace of subscriber growth.
The company's shares fell more than 13 percent shortly after the start of trading on Tuesday before rebounding, with the stock trading down almost 6 percent as of 2:40 p.m.
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The same balloon flew over anti-Trump protests in London on Friday, when thousands crammed the streets of the British capital. Police estimated that about 9,000 people took part in the march through Edinburgh, which they said "passed without incident".
"Netflix has faced hurdles before and this Q2 report won't be the last", PiperJaffray analyst Michael Olson wrote.
Earnings per share came in at 85 cents, beating analyst forecasts of 79 cents. Wall Street watches them closely and even a slight miss can... This saw the global streaming service provider post a revenue of US$3,907 million for Q2 18, compared to US$2,785 million during the same period previous year. Internationally, the company netted 4.47 million users, less than the forecast for 5 million.
During the second quarter, global net adds totaled 5.15 million.
Total streaming revenue for Q2 18 is US$3,814 million, up from US$2,671 million during the same period past year.
Netflix cited an array of competitors, starting with YouTube.
In the letter to shareholders, Netflix said it expected more competition from worldwide players including ProSiebenSat 1 Media in Germany and on-demand service Salto in France. The company also said "HBO and Disney are evolving to focus on internet entertainment services", while Amazon and Apple are investing in content as part of larger "ecosystem subscriptions". "Our strategy is to simply keep improving, as we've been doing every year in the past".