Netflix shares are tanking by 16% in pre-market trading after it lowered its U.S. subscriber growth forecast for the quarter.
The weaker than expected subscriptions are due to its decision to split the DVD and streaming businesses and charge customers for each service.
Netflix says its financial guidance is the same, and its international subscriptions will come in as expected.
The stock closed at $208 yesterday and is now trading at $173. Earlier this year it was trading as high as $304.
Here’s a look at its new guidance:
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