Popular streaming site Netflix suffered a drop in its stock price from $508 per share to less than $400, knocking down nearly $50billion from its total market cap. The drop in the stock prices was noticed soon after the news came out that it has missed its subscriber growth numbers in majority of the recent quarter. Netflix had set a goal to reach 221 million global subscribers, that marks 3 percent of the total planetary population, by the end of 2021. But it failed to achieve it.
The drop in the stock price was the fastest drop that the streaming site has ever seen in a decade, especially at a time when it had plans to again raise its prices while making it the most expensive mainstream streamer company by a good margin. The stocks of the company was not helped by the fact that it was tempering with the expectations of future growth.
During the earning call, Netflix revealed that it was aiming to just 2.5 million new subscribers in the upcoming quarter that was down from 4 million that it had aimed during the same time in 2021. One of the letters from the company shareholders had revealed a shocking revelation that mentioned that the growth in the United States and Canada was nearly nil and that ninety percent of the revenue for the company came from International markets.
Netflix is a California based company known for the top content that it boasts from across the globe. The content that it carried is of high quality and one of the top players in the digital market. It also has a massive lead when compared to the competitors in the market and its install base ensures stability for the next many years to come in terms of content generation. Netflix has always marked a growth in terms of stocks price, but it seems like it becomes tough to grow when you are already one of the biggest players in the market.
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