Netflix Stock Price Drops Over 35%
Shares of Netflix plunged 36% Wednesday after the streamer reported profit Tuesday evening that showed it lost subscribers for the first time in more than 10 years.
Netflix said few headwinds are affecting development, including increasing competition and the lifting of pandemic restrictions.
Shares of Netflix were down 36.7% to $220.65 on Wednesday, putting them on course for their worst day in almost 10 years. The stock has dropped 63.4% in 2022.
co-CEO Reed blamed the subscriber shrinkage on “great competition” and the company’s estimate that more than 100 million households are streaming the service using a shared password without paying.
To try to right the ship, Netflix is aiming to convert freeloading password-users into subscribers and to carry out a lower-cost, ad-supported tier over the next two years.
“I know it’s disappointing for investors, and it is for sure,” Hastings said on Netflix’s Q1 video interview Tuesday.
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