June 28, 2022

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Netflix stock fell after losing its first subscriber in a decade

Netflix stock fell after losing its first subscriber in a decade

Netflix stock fell more than 20% in after-hours trading on Tuesday after the streaming giant said it lost 200,000 subscribers in the first quarter — its first subscriber loss in a decade. It also missed investor expectations for revenue.

why does it matter: Netflix stock has already fallen more than 40% since the beginning of the year, due in large part to increased competition and slowing user growth expectations from Netflix for the first quarter.

details: Netflix said in the opening line of Note to contributorsIt blamed its “relatively high household prevalence” for creating “headwinds for revenue growth”.

in numbers, Per CNBC:

  • EPS: $3.53 versus $2.89, according to a Refinitiv poll of analysts.
  • Revenues: $7.78 billion compared to $7.93 billion, according to a Refinitiv poll of analysts.

The Big Picture: In March, Netflix began testing a crackdown on password sharing as a way to boost subscriptions.

  • The company said Tuesday that in addition to 222 million paying families, it estimates that Netflix is ​​being shared with more than 100 million additional families who don’t pay for the service, including more than 30 million in the United States and Canada — the most lucrative market.

go deeper… Netflix earnings over the past year:

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