Netflix pares losses after dropping on subscriber growth

• The stock was earlier on pace for its worst day in two years.
• Netflix shares recovered above $379 by midday.
• The initial drop is a notable stumble for one of the best-performing stocks of the year.

Reed Hastings, chief executive officer of Netflix.

Akio Kon | Bloomberg | Getty Images

Netflix pared losses Tuesday, ending the day just 5 percent down, after initially falling as much as 14 percent on a big miss on subscriber growth.

The stock was earlier on pace for its worst day in two years, tracking for the name's biggest single-day drop since July 19, 2016, when it fell 13 percent after a similar earnings report of weaker-than-expected subscriber growth.

The shares recovered by midday and closed at $379.48.

Netflix has a history of big rebounds, and much of Wall Street is expecting a recovery. But the initial drop is a notable stumble for one of the best-performing stocks of the year.

As of Tuesday's close, Netflix is up nearly 100 percent in 2018 and more than 130 percent in a 12-month period.