Advertisement

News

Netflix shares plummet after catastrophic forecast

Russell Kidson

Published

Netflix has long been a titan in the television streaming war, occupying 25% of the US streaming market and 19% globally. But analysts predict a much slower start this year than 2021’s first-quarter statistics. Originally, they predicted 8.4 million new customers would be added to the global streaming giant’s viewer list between January and March of this year. That number has now gone to 5.9 million new viewers, with Netflix projecting only 2.5 million. This notable decrease for the first quarter of 2022 has had a catastrophic effect on Netflix’s shares, sinking them by nearly 20%.

Losing almost 20% on its shares also strips Netflix of any gains during the COVID-19 pandemic, this hot on the heels of a decision to raise its prices by up to $2 monthly. Netflix attributes these weak early 2022 subscriber predictions to the late arrival of highly-anticipated content, such as Season 2 of the period-classic drama Bridgerton and Shawn Levy’s science fiction film The Adam Project

Netflix shares plummet after catastrophic forecast

Netflix closed at $397.50 and is currently trading at $387.15 with a loss of 2.60% ($10.35) since closing. This near-fatal blow comes shortly after the company rode a 52 week high of $700.99. Netflix saw a spike of 8.3 million new subscribers between October and December last year, attributed to the release of star-studded cinematic titles like Red Notice and serial sensation The Witcher’s new season. 

As we see the emergence of more streaming services, like the rising star AppleTV+, it’s understandable that the market leader would experience a cooling-off period as the subscription base begins to level out. However, after years of dominating the industry with massive margins, this leveling out is certainly not good for business

If you’d like to learn more about the fascinating world of Netflix or read how you can play Stranger Things: 1984 on your phone, read our guide to Netflix Games and how it’s revolutionizing mobile gaming. 

You may also like