Netflix shares were under pressure on Monday, trading down more than 4% at $340.58 apiece. At their session low of $336.30, they were down 20.5% from their June 21 high — officially entering a bear market. They’re on track to close at their lowest level since May 23.
Monday’s selling comes as shares have struggled to recover in the wake of Netflix’s second-quarter results that missed Wall Street estimates for revenue and subscriber additions. The streaming giant said it added 5.1 million subscribers during the quarter, well short of the 6.3 million addition that was expected. Revenue of $3.91 billion just missed the Wall Street consensus of $3.94 billion.
Following the results, Michael Pachter, the biggest Netflix bear on Wall Street, said he wasn’t surprised by the quarter. “They’re in a vicious spiral to the bottom in content spend,” he told Business Insider.
“I don’t think the quantity is sufficient to support the service on a stand alone basis,” he said. “Four out of five shows are going to be bad.”
Netflix shares were up 86% this year through Friday.