Netflix Inc.'s stock plunged Wednesday, as investors reacted negatively to guidance that its streaming service would attract fewer subscribers in the U.S. this year than expected.
The company's shares were trading at $60.50 at midday Wednesday, down about 11% from the previous day's close. The stock dip followed Netflix's revised guidance for subscriber growth in the U.S, which came during its third quarter investor call Tuesday after the market closed.
Netflix delivered better-than-expected revenue growth for its third quarter ending Sept. 30. However, the company said it expected to add 4.73 million to 5.43 million customers to its U.S. streaming service this year, down from its previous guidance of 7 million.
The company's revenue projection of $931 million for the fourth quarter also was off from consensus estimates of $944 million, noted Sterne Agee in its analyst report.