NEW YORK (TheStreet) — Shares of Netflix dropped in late trades after the DVD and streaming content company disappointed Wall Street with its subscriber outlook for the second quarter.
“Due to this increased net add quarterly seasonality, Q2 net adds will be below those of 2010, despite Q2 gross adds following the traditional seasonal pattern, and despite us expecting to match 2010 in annual net additions,” the company said in a letter to shareholders accompanying the release of its first-quarter results.
The stock was last quoted at $86.30, down 15%, on volume of 3.7 million, according to Nasdaq.com. After being among the worst performers in the broad market in 2011, Netflix shares have outperformed so far this year, rising more than 50%.
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