Netflix Stock Plummets

Netflix's stock price dropped more than 40 points Tuesday, or about 35 percent.  The plunge took place after Netflix announced Monday night that it had lost about 800,000 subscribers since June. 

In July the price per share peaked around $300 and has recently fallen to just over $76 per share.

These results prompted investment research analyst, Mark Mahaney, to change his recommendation from "buy" to "neutral."

The wave of subscriber cancellations started last summer when Netflix raised prices by 60 percent for some services. 

In addition, Netflix launched the widely unpopular Qwikster, for people who want DVDs sent to them in addition to web streaming videos. 

Netflix CEO, Reed Hastings, said he expects DVD subscriptions to continue to decline.  He believes Netflix's future lies in movie streaming.