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Netflix’s Subscriber Shortfall Shaves $15 Billion Off Its Value

Netflix’s Subscriber Shortfall Shaves $15 Billion Off Its Value

Netflix Sell-Off Makes Sense Amid Increased Competition, Analyst Pachter Says

Disappointing subscriber numbers for the second quarter shaved $15 billion from Netflix Inc.’s market value as trading opened Thursday.

Shares of the streaming-video service fell as much as 11%, their biggest drop since July 2018. Netflix signed up 2.8 million international customers in the quarter, almost two million fewer than expected. The company also lost 130,000 domestic subscribers as a result of higher prices and a weak slate of TV shows.

For comparison, $15 billion is more than the value of about a third of the companies in the S&P 500, including American Airlines Group Inc. and Viacom Inc.

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— With assistance by Derek Hall