Netflix stock tanks after adding less than 1M new U.S. subscribers last quarter

Netflix stock is tanking after the company reported less-than-expected revenues of $1.58 billion. Analysts were expecting quarterly revenue of $1.75 billion. Netflix also missed on earnings today, with $0.07 per share versus the analyst-predicted $0.08.

This quarter Netflix raised its subscriber numbers by 3.62 million to more than 69 million in total. That’s just above the company’s third-quarter guidance of 3.55 million new subscribers. Netflix expects to close out the year with a total of 74 million subscribers.

Although Netflix ended the last quarter with strong subscriber growth, the company added fewer new U.S. subscribers than expected — 880,000, below Netflix’s guidance of 1.15 million.

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Last quarter there was concern that the launch of HBO’s streaming service would affect Netflix revenues; however, CEO Reed Hastings discounted that notion. Netflix has continued investing in original series like its award-winning Orange Is the New Black, positioning the company as a content producer as much as a movie-streaming service.

But in addition to new competition, Netflix will also have to contend with consumer responses to its latest subscription price hike. The company recently upped prices on its most popular subscription, from $8.99 a month to $9.99 a month.

Although revenue is up year over year, earnings are down. This time last year, Netflix reported earnings of $0.14 a share.

Netflix stock took a dip earlier today, but closed out a half of a percent above where it opened. In after-hours trading the company crashed more than 10 percent — 30 minutes after the report dropped, the company was down about 6 percent from its $110.23 close.