Shares of video-rental service Netflix fell 5 percent in early trading this morning to $56.81.
Netflix CEO Reed Hastings
(Credit: Netflix)
The company is now trading well below its previous 52-week low and it followed a collapse in the stock price yesterday when shares fell 25 percent. The company warned in a second-quarter earnings report that it might report a loss in the fourth quarter and may not add as many subscribers as it had expected.
A host of analysts downgraded the stock yesterday and Consumer Reports reported that Netflix's service didn't fare well in a consumer-satisfaction survey.
Though Consumer Reports, a respected magazine operated by a non-profit consumer rights group, found a lot of respondents used Netflix's streaming service, researchers said that in terms of providing consumer satisfaction, Netflix came in 6th place behind such services as Vudu, iTunes and Amazon.
Consumer Reports said the main complaint is one we've heard for a while now about the company's streaming library: not enough selection.
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