Business, Finance & Economics

Netflix stocks plummet, receives downgrades


A U.S. Postal worker holds a stack of Netflix envelopes at the U.S. Post Office sort facility on October 24, 2011 in San Francisco, California.


Justin Sullivan

Netflix Inc.'s woes continue to mount as the company's stock fell more than 34 percent to $77.88 by midday trading on Tuesday.

The current value of the company comes in stark contrast to it's all-time high of $298.73 in July–making it the worst decline in seven years for Netflix, according to Bloomberg

"We made a couple of big mistakes this year," Netflix chief executive Reed Hastings told The Wall Street Journal about the loss. "It's up to us to own up to those mistakes and to move forward."

The drop comes in the heels of the company deciding to increase their service fee and end a shortly-lived plan to divide the online streaming and mailing services as separate entitites. The blunders have left a frustrated customer base that resulted in 800,000 U.S. subscribers leaving the company, Forbes reports.

Goldman Sachs, Citigroup and several other companies have consequently downgraded Netflix's ratings, further adding to a financially glum day for the company.