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Netflix shares plummet after catastrophic forecast

Netflix shares plummet after catastrophic forecast
Russell Kidson

Russell Kidson

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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 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. 

Russell Kidson

Russell Kidson

I hail from the awe-inspiring beauty of South Africa. Born and raised in Pretoria, I've always had a deep interest in local history, particularly conflicts, architecture, and our country's rich past of being a plaything for European aristocracy. 'Tis an attempt at humor. My interest in history has since translated into hours at a time researching everything from the many reasons the Titanic sank (really, it's a wonder she ever left Belfast) to why Minecraft is such a feat of human technological accomplishment. I am an avid video gamer (Sims 4 definitely counts as video gaming, I checked) and particularly enjoy playing the part of a relatively benign overlord in Minecraft. I enjoy the diverse experiences gaming offers the player. Within the space of a few hours, a player can go from having a career as an interior decorator in Sims, to training as an archer under Niruin in Skyrim. I believe video games have so much more to teach humanity about community, kindness, and loyalty, and I enjoy the opportunity to bring concepts of the like into literary pieces.

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