Netflix (NFLX) shares dropped over 10% in pre-market trading. The company projects third-quarter revenue of $12.86 billion. This outlook missed Wall Street estimates of $13.0 billion. Projected earnings of $0.82 per share also fell short of expectations. Consensus estimates had placed earnings at $0.84 per share.
Second-quarter revenue reached $12.56 billion. Earnings per share for the second quarter hit $0.80. Netflix also announced it will reduce viewership data reporting to once per year. Investors expressed concern over transparency as industry competition rises.
The forecast pressured U.S. stock futures already declining from a chip sector selloff. The price drop suggests fears that Netflix's high-growth era is peaking.