NETFLIX Q1 BOOMS, Q2 WHIMPERS, SHAREHOLDERS FAINT

Netflix, the company that turned “binge-watching” into a business model and “we’re still growing” into a civic religion, shocked investors by doing the unforgivable: missing guidance. Q2 profit and revenue came in below Wall Street’s finely tuned fantasy numbers, and the stock promptly took a 10.6% nosedive, proving once again that the market treats spreadsheets like sacred scripture until the numbers step out of line. Adding a touch of corporate theater, co-founder Reed Hastings announced he won’t stand for re-election and will leave to focus on philanthropy and other pursuits, which is a very polished way of saying he’s earned the right to leave before the quarterly mood swings get any more dramatic. To be fair, Netflix did just post a strong Q1, beating estimates with revenue up 16%, so the company remains the rare empire where one excellent quarter and one cautious forecast can produce instant investor grief, as if the future had personally insulted the Street’s appetite for perfection.