The stock market has been a volatile terrain for big tech and media companies in recent years. Netflix, which has been the fair-haired golden child for Wall Street for some time, has seemingly found itself in the dog house.
In the wake of the streaming service announcing that it fell short of projected subscriber goals in its fourth-quarter earnings on Thursday last week, the company’s market cap reportedly dropped in value by $50 billion in one day.
The reaction was due to the company having just missed its goal of accumulating a total of 222 million subscribers in 2021. Investors took badly to the news, dropping the stock 21.8% from $508 to just under $400 on Friday and turning it into the worst 24-hour period on the stock market for Netflix in a decade.
The market only opened 90 minutes ago and things haven’t improved so far, the stock falling further a further 9% in that time and as of writing it now sits at $362 per share.
Netflix is also forecasting 2.5 million new subscribers for Q1 2022, down from 4 million in the same period last year and their worst first quarter in a decade. In the U.S., the service has seemingly hit a saturation point as over 90% of the company’s subscriptions came from outside North America in 2021.
Source: The Wrap
