>> Shares on Netflix opening 12% lower on Tuesday, after a rare miss in the streaming services quarterly results. Subscriber growth fell short of Wall Street's expectations by about a million customers. Reuters correspondent, Lisa Richwine.>> This was a huge surprise to Wall Street. Investors have been accustomed to Netflix beating their estimates every quarter, sending the stock up by double digits, and the opposite happened this quarter.
>> Netflix said in its letter to shareholders, quote, we had a strong but not stellar Q2, and said that it over forecasted the pace of new subscribers. Wall Street has been betting that the streaming video pioneer would deliver outsize growth as demand for online entertainment increases around the globe.
And it needs that growth as Netflix is spending heavily to hook new customers budgeting $8 billion for programming and $2 billion for marketing in 2018 alone.>> One of the big challenges is competition. There are a lot of companies getting into streaming television. Netflix had been one of the top gainers on the stock market this year.
Their shares had doubled heading into this earnings report. So now, investors are going to have to decide if this was a one quarter blip or whether they think this changes the long-term story for Netflix for several quarters going forward.>> While Wall Street remains mostly positive on Netflix, six stock analysts cut their price targets on the company's shares.