Netflix is getting whacked after adding fewer subscribers than expected (NFLX)

Netflix shares took a hit after disappointing growth figures for the second quarter

Netflix shares plunge in after-hours trade after forecast miss

Netflix shares have plunged after the leading streaming television service said subscriber growth fell short of expectations in the recently ended quarter.

Chief Executive Reed Hastings, in a letter to shareholders, called it a "strong but not stellar Q2".

Netflix's stock got hammered after the bell after reporting that it added far fewer subscribers in the second quarter than Wall Street was expecting - and warned of another subscriber shortfall to come in the third quarter.

The streaming giant announced Monday afternoon that it had added just 670,000 subscribers in the United States compared to the 1.2 million many analysts predicted in the second quarter, and 4.5 million overseas subscribers instead of the 5.1 million projected. Analysts were expecting 6.3 million - 1.2 million in the U.S. and 5.1 million internationally, according to Bloomberg.

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Despite the "near-term gut punch", Netflix is still well-positioned for future growth, GBH Insights analyst Daniel Ives wrote in a note.

For the current quarter, the company is projecting revenue of $3.988 billion, below the consensus for $4.126 billion. That comes out to 4.87 million new subscribers for the quarter, far below the 6.2 million Netflix was hoping for. Revenue climbed 6 percent to $3.9 billion.

Still, Netflix ended Q2 with 130.1 million global subs, up 25% year over year, with 56 million in the US and 72.8 million elsewhere.

It marked the first time in a more than a year that Netflix hadn't exceeded its subscriber growth projections. For the first time, Netflix generated more revenue outside the U.S.: worldwide revenue totaled $1.92 billion and U.S. revenue was $1.89 billion for Q2. In second quarter a year ago, Netflix posted $2.79 billion in sales. 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".

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