Shares of Netflix closed down more than 35% Wednesday after the streamer reported earnings Tuesday evening that showed it lost subscribers for the first time in more than 10 years. The results and weak outlook led to a wave of downgrades from Wall Street on fears over the company’s long-term growth potential.
Why Netflix is a risky stock?
Jan 21, 2022 · Netflix shares fell 20% after the company reported slowing subscriber growth in Q4. News Videos. Netflix shares fell 21.8% Friday after the company quietly admitted in its fourth-quarter earnings ...
Why Netflix stock is so volatile?
Apr 20, 2022 · Netflix (NASDAQ:NFLX) stock skated downhill out of today's open and never looked back, finishing down 35.1% and taking just short of $51 billion off the company's Tuesday valuation of $151.5 ...
Why you should buy Netflix stock?
Apr 20, 2022 · The drop caused Netflix to shave more than $50 billion off its market cap. It is now the worst-performing stock of 2022 in the S&P 500, down 62.5% year-to-date. Netflix said several headwinds are...
Should you buy Netflix stock right now?
Apr 21, 2021 · Shares of Netflix ( NFLX 3.52% ) were getting a thumbs down from investors today after the streaming giant reported underwhelming subscriber growth in its first quarter and indicated that ...
Why did Netflix stock drop?
The stock is down 62% this year including Wednesday's fall. Users flocked to Netflix in the initial months of the coronavirus pandemic as lockdowns and measures to contain the virus kept people at home, sending the company's share price to record highs.6 days ago
Why did Netflix stock drop 2020?
Topline. Netflix's stock on Monday sank to its lowest point since the start of the coronavirus pandemic in March 2020, with investors continuing to sell shares of the popular streaming service as it faces slowing subscriber growth and rising costs amid increased competition from rivals. Netflix CEO Reed Hastings.Mar 14, 2022
Why did Netflix stock drop 2021?
Here are three reasons: Online streaming market is growing fast but has attracted successful rivals. Netflix's revenue growth rate is slowing down. Netflix is not adding enough new users.Apr 18, 2022
Why is Netflix struggling?
Subscriber fatigue, unwelcome price hikes, and competition from the likes of Disney+ and HBO Max have rattled Netflix.6 days ago
Is Netflix losing market share?
The stock closed down 35.1% on Wednesday, to $226.19 per share, marking Netflix's biggest one-day drop ever in percentage terms. The company shed $54.4 billion in market capitalization overnight, the largest single-day decline in its history.6 days ago
Why is Netflix stock down March 2022?
Investors punished Netflix's already beaten-down shares, sending them below $270 after hours after they finished the regular trading day at $348.61, up 3%. They have lost more than 40% of their value in 2022 amid a broader rotation out of tech stocks and concerns about Netflix's growth potential.7 days ago
How many subs did Netflix lose?
Netflix loses 200,000 subscribers, projects even deeper losses this spring. PBS NewsHour.6 days ago
Are Netflix losing money?
Netflix's share price has tumbled after it announced a net loss of 200,000 subscribers globally, and expects to lose a further two million over the next three months. Its share price slid more than 35% in early trading on Wednesday following the announcement, wiping around $55bn (£42bn) off its value.6 days ago
How much market cap did Netflix lose?
a $50 billionAfter a decade of incredible growth, Netflix has reached what is likely its lowest point. The company's stock was already down more than 40% and now, the streaming platform's shares have declined an additional 35%, which resulted in a $50 billion loss in market capitalization, the biggest loss for Netflix to date.4 days ago
Why is Netflix losing so many subscribers?
The streaming service says it's losing subscribers for the first time in a decade. It blames competition and people who use other people's passwords.5 days ago
Why did Netflix lose so many users?
Netflix has lost 200,000 U.S. subscribers in the first quarter of 2022, marking its first drop in customers in more than a decade, the company announced Tuesday. It attributed the losses to factors such as stronger competition, the Ukraine-Russia conflict and password sharing.6 days ago
Weak subscriber growth spooked investors
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What happened
Shares of Netflix ( NASDAQ:NFLX) were getting a thumbs down from investors today after the streaming giant reported underwhelming subscriber growth in its first quarter and indicated that subscriber additions would be even weaker in the second quarter.
So what
Netflix added just 4 million net new subscribers in the first quarter, its worst first quarter in at least six years.
Now what
It's clear why the stock is down. Investors are understandably disappointed by the weak second-quarter guidance and lower-than-expected growth in the first quarter.
How much money did Netflix spend on original movies?
Netflix has known this for quite some time, and spent $12 billion on creating original shows and movies in 2018, according to Variety.
Why is Netflix stock down?
The real reason why Netflix stock is down. In a letter to shareholders, Netflix said it lost domestic subscribers due to price increases. Investors worry about incoming competition and loss of popular shows like 'Friends.'. FILE- This March 19, 2018, file photo shows the Netflix app on an iPad in Baltimore.
When will Netflix report its financial results?
Netflix reports financial results Tuesday, April 16, 2019. (AP Photo/Patrick Semansky, File) Patrick Semansky, Associated Press. SALT LAKE CITY — For the first time in eight years, Netflix lost U.S. subscribers. Netflix missed the mark on its expected earnings and subscriber growth this quarter and in a letter to shareholders, ...
Is Netflix a competitor to pay TV?
But, as CNBC pointed out, “Netflix is just one of many channels that provides you with entertainment — not a competitor to the entire pay-TV ecosystem.”. Now, the company is in the same boat as other media companies, trying to create films and television shows that persuade consumers to subscribe and stay subscribed.
Key Points
Investors are reacting to the stock being downgraded and receiving a lower price target.
NASDAQ: NFLX
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What happened
Shares of Netflix ( NFLX 0.20% ) were sliding today after a Jefferies analyst downgraded the company's stock from a buy rating to hold and cut his price target from $737 down to $415.
So what
Jefferies analyst Andrew Uerkwitz downgraded Netflix's stock and cut its price target, saying that "the best content slate we've seen is doing little" to drive subscriber growth.
Now what
While Netflix investors are right to be disappointed with the company's recent results, dumping the stock right now might not be the best long-term move.
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How many new members will Netflix have in the second quarter?
To make matters worse, Netflix is forecasting it will add only 1 million new members in the second quarter. If it happens as forecast, that will be the lowest quarterly gain since 2016. Management explains that the reason for the slowdown in member growth is because of the significant pace of signups during 2020.
How many people signed up for Netflix in 2020?
As people anticipated being cooped up in their homes during the pandemic, they signed on to Netflix by the millions. Management does make a valid point -- 36 million people signed up for Netflix in 2020. Still, it wasn't enough to assuage worried investors.
Is Netflix's membership growth volatile?
There has always been volatility in membership growth for Netflix. What's changed over the last few quarters are the significant challenges posed by competitors. Whereas previously investors may have attributed lower subscriber growth at Netflix to variance, they may now attribute a slowdown to competition.
