Netflix grows to 130m users worldwide, but share price plunges

5.2-million more people are now subscribed to Netflix worldwide, but that number has fallen well short of the company’s forecast.

It’s the first time Netflix has missed its user growth forecasts since Q1 2017.

In Q2 2018 the streaming giant added just 670 000 US based subscribers — less than its prediction of 1.2-million.

“We had a strong but not stellar Q2, ending with 130-million memberships. Membership growth was 5.2-million, the same as Q2 last year, but lower than our 6.2-million forecast,” the company writes in its investor letter.

In Q1 2018, the company added 7.4-million subscribers, beating its predictions by a million users.

Falling short of estimates has its consequences. In after hours trading, Netflix’s shares fell by 14%, denting gains made during the previous quarter.

Despite this, the company’s not slowing its spending. At least US$12-billion will be dropped on original content in 2018.

Have a look at the company’s full Q2 2018 report here.

Feature image: Netflix