Written by Brenda Nakalema

Netflix Lost Subscribers for Streaming. The Stock is Taking a Dive.

Netflix shares took a deep dive in late trading on Tuesday after the streaming giant posted less than exciting results …

Netflix shares took a deep dive in late trading on Tuesday after the streaming giant posted less than exciting results for the March quarter.

According to data released, Netflix (ticker: NFLX) lost nearly 200,000 net subscribers in the quarter, a steep decline from the company’s earlier forecast of 2.5 million net additions. To make matters worse, the company expects to lose another 2 million net subscribers in the June quarter, once again failing to meet expectations.

Revenue in the quarter was $7.87 billion, a 9.8% gain and just slightly under the FactSet consensus estimate of $7.94 billion. Profits stood at $3.53 a share, ahead of the street at $2.95 share. For the June quarter, Netflix foresees revenue of $8.05 billion, with profits of $3 a share; the Wall Street consensus stood at $8.2 billion in revenue and profits of $3 a share.

“Our revenue growth has slowed drastically as our results and forecast…show,” said the company to shareholders. ” Streaming is winning over linear, and Netflix titles are top-rated globally. However, our relatively high household penetration- when including the large number of households sharing accounts- combined with competition is creating revenue growth headwinds. The big COVID boost to streaming obscured the picture until recently.”

Netflix shares in recent trading were down 21% to $275.65.