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Netflix Shares Drop After Weak Q4 Predictions
A report that Netflix's fourth-quarter revenue and subscriber figures will fall short of expectations has caused shares in the online DVD rental company to drop 10 percent in pre-market trade.
Netflix is scheduled to report third-quarter results on October 20th, but says the number of subscribers will be just below the low ended predictions at 8.672 million. Income and revenue are expected to be in line with previous estimates.
"Net subscriber growth in July was in line with expectations but August was unusually weak", said CFO Barry McCarthy. "In September, the business regained momentum with results slightly below original expectations, likely due to the economic climate."
By Chris Snyder for Wired.com
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