After projecting losses in 2012 in part because of a customer revolt, Netflix saw its shares take a huge hit in extending trading Monday, reports Bloomberg.
The company’s share prices plunged plunged 27% in the session to settle at $87 — a mere 29% of what they were worth at their peak just over three months ago, the story reports.
The company has lost more than $10 billion in market value since its shares reached an all-time closing high of $298.73 in July, the story points out.
Netflix projected losses "for a few quarters" in 2012 when it reported results after the close of trading on Monday. The loss forecast comes amid a customer backlash over a price hike and an abandoned plan to separate its DVD mail service from online streaming, as well as higher content costs, the story notes.
Netflix is also facing startup costs from its expansion into Latin America and a planned rollout in the U.K. and Ireland in early 2012, the piece adds.
Because of cancellations, U.S. customers in the current quarter won’t meet the 24.9 million projected by analysts. That suggests that Netflix hasn’t calmed customers upset by the price increase and aborted plan to split its business, the article points out.
Chief Executive Reed Hastings said he doesn’t plan to step down and declined to talk about discussions with his company’s directors, the piece adds.