Video-streaming giant Netflix has reported a slowdown in subscriber growth, sending its shares tumbling.
About 3.98 million people signed up for Netflix between January and March, well short of the projected 6 million.
The company said a lack of new shows may have contributed to the shortfall, adding that it expected this to recover as sequels to hit shows are released.
Netflix shares fell 11% in after-hours trading to $489.28, wiping $25bn off the company’s market capitalization.
Signaling that the trend is continuing, Netflix forecast an increase of just 1 million worldwide subscribers in the current April-June period, down from an increase of 10 million subscribers at the same time last year.
“It’s just a little wobbly right now,” Netflix co-CEO Reed Hastings said during a discussion of the company’s results streamed Tuesday.
The poor showing to start the year rattled investors, causing the Los Gatos, California, company’s stock to drop by more than 8% in extended trading, even though Netflix’s revenue hit analyst targets and its profit exceeded estimates.
Netflix earned $1.71 billion, or $3.75 per share, more than doubling from a year ago. Revenue climbed 24% from the same time last year to $7.16 billion.