Netflix stock drops 8% more after news of subscriber losses
Netflix didn't get a respite from bad news today.
After watching its stock fall 19% yesterday following the disclosure that it was losing subscribers for the first time in years, the online video and DVD-by-mail company's shares took another beating Friday, dropping an additional 8%.
In total, Netflix has lost 26% of its value, or about $2.8 billion in market capitalization, over the last two days.
After announcing a controversial price increase in August, Netflix had told investors to expect that it would gain 400,000 subscribers in the current quarter. Instead, chief executive Reed Hastings said yesterday that it expected to lose 600,000 by Sept. 30.
Many Wall Street analysts were critical of the company, saying the news was a sign that its previous freight train-like momentum had come to a halt and was now moving in the wrong direction.
Netflix stock closed at $155.19 on Friday, its lowest value since October of 2010.
-- Ben Fritz