(Reuters) - Netflix Inc’s subscriber growth fell short of Wall Street expectations on Monday, sending shares of the normally high-flying stock down 14 percent on fears that the company’s rapid expansion is slowing. 
 
 The streaming video pioneer added 5.2 million customers from April through June, 1 million fewer than forecasts from Thomson Reuters I/B/E/S, as it added new programming including “Lost in Space” and new episodes of Marvel’s “Jessica Jones” and “13 Reasons Why.” 
 
 “We had a strong but not stellar Q2,” Netflix said in a quarterly letter to shareholders. 
 
 Netflix said it had “over-forecasted” quarterly fluctuations in the pace of new customers. The company noted that it had underestimated subscribers for seven of the past 10 quarters. 
 
 Before the earnings report, Netflix shares had gained 109 percent, making it the second-strongest performer on the S&P 500 index. In after-hours trading on Monday, Netflix shares sunk 14 percent to $343.60, eroding $24.2 billion in market capitalization and down from an earlier close of $400.48. 
 
 “Investors are devastated by Netflix’s Q2 projection that went down in dramatic flames. Now future projections are suspect and that decimates valuation,” said Eric Schiffer, chief executive officer of private equity firm Patriarch. 
 
 Wall Street had been betting that Netflix would deliver outsized growth as demand for online entertainment increases around the globe. The company is spending heavily to hook new customers, budgeting $8 billion for programming and $2 billion for marketing in 2018. 
 
 Netflix added 670,000 subscribers in the United States, well below analysts’ estimates of 1.19 million, according to Thomson Reuters I/B/E/S. 
 
 It signed up 4.47 million subscribers internationally, while analysts were expecting 4.97 million. 
 
 The overly optimistic projections were “pretty broad across multiple markets,” Chief Financial Officer David Wells said on a post-earnings webcast. 
 
 Executives voiced confidence about the long-term health of the streaming service. Chief Executive Reed Hastings said median viewing hours were growing, though he did not provide specifics. 
 
 The Netflix logo is seen on their office in Hollywood, Los Angeles, California, U.S. July 16, 2018. REUTERS/Lucy Nicholson 
 
 “The fundamentals have never been stronger,” Hastings said. 
 
 Forrester analyst James McQuivey said he believed that the quarterly results were “not a sign of softening in the business overall.” 
 
 “These are still millions of new subscribers, even if they didn’t meet the expectations that might have been set by the last two quarters, which were extraordinarily high,” he said. 
 
 Earnings per share came in at 85 cents, beating analyst forecasts of 79 cents. Total revenue rose 40.2 percent to $3.91 billion. Analysts had expected revenue of $3.94 billion. 
 
 For the current quarter, Netflix projected it would add 5 million customers. It is making a big push in India. Earlier this month, it debuted its first Indian original series, “Sacred Games,” part of a slate of new shows aimed at the vast Bollywood entertainment market. 
 
 Netflix said operating margins would be narrower than previously expected because of the rapid strengthening of the U.S. dollar, which appreciated by more than 5 percent against major trading partners’ currencies in the second quarter. While most of the company’s revenue growth comes from international markets, the vast majority of its costs remain dollar-denominated. 
 
 Hastings said the company would make adjustments to account for foreign exchange rates in order to “steadily” increase operating margins. 
 
 At the same time, Netflix faces growing competition. 
 
 Amazon.com Inc plans to add more regional content in India as it builds the Prime video service around the world. Apple Inc is pouring money into original programming, signing up A-list names including Oprah Winfrey. And AT&T Inc has promised to boost investment in HBO after taking over the network in its Time Warner acquisition. 
 
 Meanwhile, cable distributors are offering smaller and cheaper bundles of channels. 
 
 In the letter to shareholders, Netflix said it expected more competition from international players including ProSiebenSat 1 Media in Germany and on-demand service Salto in France. 
 
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 “Our strategy is to simply keep improving,” Netflix said. 
 
 (GRAPHIC: Netflix subscriber additions - tmsnrt.rs/2Nm9YsK) ||||| Netflix's explosive growth may be starting to plateau. The streaming-video company reported Monday that it added 5.2 million new members between April and June, a million fewer customers than it had previously forecast. 
 
 In a letter to shareholders, Netflix (NFLX) blamed the shortfall to faulty internal projections of its subscriber growth, explaining that such guidance is often volatile. The company called its performance in the second quarter "strong but not stellar." 
 
 Netflix shares, which as one of the best-performing stocks have soared 109 percent this year, fell nearly 14 percent to $344.60 in after-hours trading. That erased roughly $25 billion from the company's market valuation. 
 
 The video service posted revenue of $3.91 billion in the period, falling short of Wall Street expectations. Sixteen analysts surveyed by Zacks expected $3.94 billion. For the current quarter ending in October, Netflix said it expects revenue in the range of $3.99 billion. Analysts surveyed by Zacks had expected revenue of $4.14 billion.
– Netflix's share price, which had more than doubled since the start of the year, tumbled Monday after the company admitted that subscriber growth is beginning to slow down. In a letter to shareholders, the company said subscriber growth between April and June had been 5.2 million—1 million below its prediction, CBS News reports. The company said it had "over-forecasted" subscriber numbers in the "strong but not stellar" quarter, reports Reuters. Shares dived nearly 14% in after-hours trading following the letter, wiping around $25 billion from the company's market valuation. (The company's top spokesman was fired last month for his "insensitive" use of a racial slur when discussing comedy.)