Only hours after reporting a 50-percent increase in net income for its second-quarter compared to the same period last year, online DVD renter Netflix issued a profit forecast Monday indicating that it expects profits to fall during the rest of the year following its decision to reduce subscription rates and upgrade customer service to compete more effectively against Blockbuster. Shares plunged 12 percent Monday, closing at $17.27. They continued falling today (Tuesday) after an analyst at Jackson Securities reiterated his "hold" rating on the company and reduced its target price to $16 from $21. At mid-morning trading, the stock was selling for $16.49.