Shares in streaming and DVD video company Netflix took a steep drop Wednesday after Wall Street analysts cut their forecast for the company's stock, falling 25% to $60.28.
That price is a whopping 79% under the price the stock was trading at just one year ago (over $281 per share).
It's been a year since the company tried - and failed - to separate its product offerings, and growth in subscribers hasn't quite lived up to expectations. Two years ago, Netflix said it would have 7 million new customers this year - and in a letter to shareholders, the company's bosses admit that might not happen unless they hit the upper end of their third-quarter estimates.
Concerns among the analysts range from competition (from Redbox, Amazon, Hulu and cable TV) to the lower profitability of the streaming service versus DVDs, and whether or not it's a sound idea for Netflix to put its U.S.-market profits into worldwide expansion.
Wednesday's price dump is the second and largest this year for Netflix. Back in April, the company's stock took a 14% hit, also caused by concerns over the company's lagging growth.
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