Netflix forecasts weaker subscriber growth

It’s been one of the highest-flying stocks during the pandemic, but Netflix shares tumbled more than 10 percent in after-hours trading Thursday after the company forecast weaker subscriber growth for the third quarter than Wall Street was expecting.

The streaming service has been benefitting from stay-at-home orders, adding over 10 million global subscribers from April through June – but that number will likely drop to 2.5 million through August the company said. Analysts had been expecting over 5 million.

Netflix also announced the promotion of content chief Ted Sarandos to co-CEO, making the 20-year company veteran a clear successor to founder and fellow co-CEO Reed Hastings.