Wall Street took Netflix at its word, and then some, when the company said in its earnings report that it probably would sign up fewer new subscribers this year than it had expected. That, coupled with a 91 percent year-over-year drop in net income, caused shares of the company to promptly drop by 25 percent on Wednesday. Meanwhile, four brokerages cut their price targets for the stock. Netflix reported a net income of $6.16 million, or 11 cents per share, for its second quarter results. For the same period last year, it posted $68 million, or $1.26 per share.
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Netflix Takes More Punishment
Posted by: Erika Morphy July 26, 2012 07:00 AMWall Street took Netflix at its word, and then some, when the company said in its earnings report that it probably would sign up fewer new subscribers this year than it had expected. That, coupled with a 91 percent year-over-year drop in net income, caused shares of the company to promptly drop by 25 percent on Wednesday. Meanwhile, four brokerages cut their price targets for the stock. Netflix reported a net income of $6.16 million, or 11 cents per share, for its second quarter results. For the same period last year, it posted $68 million, or $1.26 per share.