Netflix (NFLX) took a header in after-hours trading.
All after reporting slowing growth in new subscribers, and lower than expected profits.
The company added 2.2 million net memberships in the months ending September 30. That’s down from 6.8 million year over year. That also dropped the company’s total subscribers to 195.2 million, which was lower than expectations for 196.2 million.
NFLX also posted diluted EPS of $1.74 on sales of $6.4 billion in revenue. Analysts were looking for $2.13 EPS on $6.38 billion sales.
While the company attributed slowing growth to its “record first half results,” some are concerned company may not be able to continue its momentum.
Going forward, NFLX forecast six million paid net adds, which would still be below the 8.8 million it added in the final quarter of 2019, says CNBC. “The state of the pandemic and its impact continues to make projections very uncertain, but as the world hopefully recovers in 2021, we would expect that our growth will revert back to levels similar to pre-COVID,” said the company.