(CelebrityAccess) – Hours after Netflix announced it had lost subscribers for the first time since its product launch in 2011, the streaming giant lost upwards of $17 billion in market value Thursday when its stock sunk 10 percent to $325.15, down $37.29 for the day.
The massive single-day drop is a direct result of yesterday’s announcement by Netflix CEO Reed Hastings that the company missed its North American subscriber growth projections for Q2, even though it previously estimated that the company would add 5 million new users for the quarter. Instead, Netflix ended the quarter with 126,000 fewer subscribers in the market.
In his letter to shareholders, Hastings attributed the loss of consumers to rising prices and weaker content offerings in the first quarter of the fiscal year, however, projected big things for Q3 noting the quarter started out with a bang behind the Season 3 debut of the Netflix hit series “Stranger Things.”
Despite the major setback, the streaming giant is still worth an estimated $142b, according to The Wrap.