Netflix shares dive as punters and investors switch off on poor subscription numbers

 
Jake Cordell
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The latest season of House of Cards buoyed traffic to Netflix in the first quarter - the second wasn't so impressive
The latest season of House of Cards buoyed traffic to Netflix in the first quarter - the second wasn't so impressive (Source: Getty)

Shares in Netflix crashed by more than 15 per cent in after hours trading tonight after the video streaming service came in well short of expectations for new subscribers.

Just shy of 1.7m people around the world signed up to Netflix in the second quarter of 2016 - thirty per cent off the firm's own guidance of 2.5m.

In a letter to shareholders, Netflix said: "We are growing, but not as fast as we would like or have been."

Revenues actually beat expectations, coming in at $1.96bn (£1.48bn) for the three month period, though with online disrupters used to breakneck rates of growth in users, investors dumped stock in the Nasdaq-listed firm, sending the share price down to $83.44 in after-the-bell trading from more than $98 at the close.

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