Netflix stock drops more than 10% as earnings show huge decline in new subscribers

Netflix Inc. shares plunged more than 10% in the extended session Wednesday after the video-streaming giant badly missed projections for new paid subscriptions.

Netflix NFLX, -0.97% reported the addition of just 2.7 million paid subscribers globally in the second quarter, far short of what Wall Street and the company expected. Analysts were looking for global paid streaming subscriber additions of 5.3 million, according to FactSet, on domestic additions of 350,000 and 4.8 million internationally. Netflix had projected 5 million new customers.

In a letter to shareholders, Netflix executives noted that price increases began rolling out earlier this year, and disappointing subscriber additions were more targeted in regions that were experiencing the larger bills.

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