Netflix (NFLX - Free Report) has hit the skids in Wednesday's after-market, down 12% following a disappointing Q2 earnings report. Actually, earnings of 60 cents per share were 4 cents ahead of estimates while sales of $4.92 billion was only marginally lower than expected. But it was a big deficit in subscriber growth -- 2.7 million in the quarter, versus 5 million expected and 5.5 million in the year-ago quarter -- which has taken the stock down double digits.
The company tried to focus on revenue growth of 26% in the quarter, as well as Q3 subscriber expectations of 7 million, but as of now this subscriber slowdown is weighing heavily on the shares, especially at a valuation around 130x earnings. Both International and U.S. subscriber growth fell in Q2. Shares have buoyed back to around -11% in late trading.