Netflix today forecasted a considerably weaker-than-expected demand for one of world’s foremost streaming service, sending its sharing tumbling by well over 9% in after-hours. This comes even as stay at home orders continue to remain implemented across the globe amid a second wave of peaking infections.

The news has received a big red on the wall street. Netflix shares were down as much as 9% in after hours, after gaining over 3% during trading hours in anticipation of a great earnings quarter. With most people confined inside homes, logic says numbers for Netflix should have been out of the roof. But that clearly did not happen. And not just that, Netflix’s forecast too was well below expectations.

In terms of Q2 results, the company reported the streaming giant reported $6.15 billion in Q2 revenue generated operating income of $1.36 billion and net income of $720 million. In per-share terms, the company earned $1.59 in the three-month period. These numbers stack up against an $6.08 billion in revenue and earnings per share of $1.81 expectations, according to Yahoo Finance analyst average. And even though Netflix beat revenue expectations, profit numbers were miserably low.

In terms of net customer additions too, Netflix seems to have beaten expectations. But clearly that net addition did not bring in any significant increase in profits.

But it wasn’t those numbers that have sent its shares tumbling. Its the forecast that is worrisome. Netflix expects $6.33 billion in revenue leading to operating income of $1.25 billion and net income of $954 million in Q3 this year. In per-share terms, the company expects to earn $2.09 in revenue. It even forecasted a net addition in customer numbers. But that is exactly where the problems lie.

The net addition that Netflix predicts, does not go down well with the profit numbers it is forecasting. The net addition is also almost half of what street expected. Netflix forecast it would add 2.5 million new paid streaming customers around the world. Analysts on averaged expected a projection of 5.3 million, according to IBES data from Refinitiv, said Reuters.

Shares of Netflix, which was among the top gainers during the pandemic, plunged 9.5% to $477.15 in after-hours trading.