Despite gaining 630,000 subscribers in the spring and an increase in revenue, Netflix’s stock prices fell because the growth failed to reach Wall Street’s expectations.
The company’s revenue for the quarter that ended June 31 was $1.069 billion, up 20% from 2012’s first quarter revenue of $889 million, but just under Wall Street’s expectations of $1.072 billion, reports USA Today.
Wall Street analysts had reportedly hoped for a growth in subscribers of 690,000, according to the New York Times, and fell short by 30,000. Netflix’s shares initially fell on Monday 2.6% and eventually by 7%.
Netflix recently threw its hat into the Emmy ring with standout House of Cards, which garnered nine of the company’s 14 nominations. The fourth season of cult sitcom Arrested Development took three nominations, including a best comedy actor nod for Jason Bateman, while horror series Hemlock Grove got two nominations.
Many of the 630,000 new subscribers likely signed up for the site to watch the fourth season of Arrested Development, which originally appeared on Fox from 2003 to 2006.
Image: Twitter