By Netflix shares started to sink as the company sees the subscribers’ growth slowing down. Netflix Inc. to add just 2.5 million subscribers this quarter of the year, a number that falls short of Wall Street’s estimates. This marked the slowest start for the new year 2022 for the company in a decade.
Netflix shares drop as much as 20%, which is $404.50, in after-hours trading, obliterating approximately $45 billion in market value as stakeholders hold for the outlook that the streaming giant “Netflix” is entering a new chapter of slower growth. This drop has also caused Walt Disney Co. and Roku Inc. to be slouched.
Netflix added 18.2 million customers in 2021 and currently, the company is 50% down about this year according to records. Netflix shares have been fallen by 1.48% due to this setback. Forecasting by the company inferring further slow down to continue till another quarter. The company’s executives wriggled to identify the cause behind the drop. Rough economy specifically in Latin America and persistent effect from the Covid-19 pandemic has been ascribed as the probable cause for the drop.
The administration also acknowledged the possible impacts of the competing streaming services. Chief Financial Officer “Spencer Neumann” while speaking on a webcast Thursday said, “It’s tough to pinpoint why (subscriber) acquisition hasn’t recovered to pre-Covid levels,”
However, Co-founder Reed Hastings dismissed the competition as a problem for a long, perceiving Netflix nurtured as many competitors came into the business.
