Netflix earnings forecast disappoints Wall Street, shares tumble

Netflix shares fell about 8.6 percent in after-hours trade after its third-quarter revenue guidance of 12.86 billion dollars and EPS guidance of 82 cents came in below analyst estimates of 13 billion dollars and 84 cents respectively. Prior quarter revenue of 12.56 billion dollars and EPS of 80 cents were broadly in line with expectations, while the company said it has over 325 million paying members and reiterated its forecast of 3 billion dollars in ad revenue by year-end.