Netflix, the streaming juggernaut that has upended the entertainment industry, showed signs of vulnerability Wednesday when it significantly undershot the number of customers it had expected to sign up for the second quarter.
The company said it had added 2.7 million subscribers for the three months ending in June, well short of the five million Wall Street investors were expecting. The company also lost 130,000 domestic customers during the period, meaning all of its growth came from overseas.
Netflix’s stock fell more than 10 percent after the market closed, a drop of more than $17 billion in market value.
The second quarter is typically the company’s weakest period, but Netflix performed worse this time around.
The upside is that the company revised its forecast for the current quarter — when the new season of one of its biggest hits, “Stranger Things,” has been made available — and now expects to add more than seven million customers for the summer period, slightly up from its previous estimate.
This story will be updated.