As Streaming Growth Falls Short, Netflix Shares Take a Hit Bloomberg
Netflix shares took a hit Tuesday after the company reported U.S. streaming growth that fell short of analysts' projections, according to Bloomberg.
The shares fell as much as 19% in extended trading, with the company also reducing its forecast for domestic growth and forecasting larger losses due to its international expansion.
Netflix Chief Executive Officer Reed Hastings said the company doesn't plan to raise prices or change strategy, and added that he believes investing in Internet video is "very smart for us," according to the story.
Some analysts aren't so sure, with Michael Pachter, an analyst at Wedbush Securities in Los Angeles, saying that Netflix's $5 billion in obligations to buy movies and TV shows for streaming customers isn't sustainable, the story notes.