Netflix, after reporting its first loss since 2005, projected a slowdown in the growth of its U.S. streaming customers, reports Bloomberg.
The company’s shares plunged 17% Monday after projecting the slowdown, the story notes.
Netflix expects to end the second quarter with 23.6 million to 24.2 million online customers, up from 23.4 million at the end of March. While still a gain, that suggests the service will add only 200,000 to 800,000 customers, down from 1.74 million in its first quarter, the piece points out.
“They guided to subscriber growth dropping a ton quarter-over-quarter, and some people think as soon as growth stops, this thing’s over,” said Michael Pachter, a Wedbush Securities Inc. analyst in Los Angeles who has an underperform or sell rating on the stock.
Netflix CEO Reed Hastings said the slowdown is due to higher seasonal customer turnover.
The company also plans to enter an additional European market this year, as its entry into the U.K. market has been well received, the story notes.