NFLX Stock Down: Netflix Loses Nearly One Million Subscribers Over 3 Months

NFLX Stocks Down as Netflix Struggles to Grow and Rental and one Stream at a Time

LOS GATOS, CA - While Netflix advertisements can be seen everywhere and as recently as this summer the company was doing quite well, they have lost around 800,000 subscribers over three months, causing some to question whether the company has what it takes to survive long term.

After falling 61% from the stock's peak in mid-July, NFLX shares plunged a stunning 28% in after-hours trading Monday. This followed a bearish financial forecast.

According to Mercury News, the Netflix subscriber drop-off was the fallout from the company's series of missteps, Reed Hastings and David Wells, Netflix's chief executive and chief financial officers, respectively, said in a letter to shareholders released Monday.

They added that the primary cause of the subscriber decline was the price hike. That move, which raised prices by as much as 60 percent, hit customers who subscribed to both Netflix's DVD and its streaming video services.

Forbes has reported that the stock movement could be trouble or might spark a "monster rally."

"NFLX surged into the close Friday and is up in the pre-market, so it looks like we may see a little run into the report," they wrote.