Entertainment
Netflix Stock Plunges After Losing 200,000 Subscribers in the First Quarter
(CTN News) – Streaming leader, Netflix, reported that it lost subscribers when it reported its first-quarter earnings this week after its shares plunged earlier this year because of concerns about subscriber growth.
Netflix (NFLX) now has 221.6 million subscribers across the globe. During the first quarter of 2022, the company lost 200,000 subscribers, the company reported on Tuesday. There was a forecast that the service would add 2.5 million subscribers, but the company said it would lose another 2 million subscribers in the second quarter of 2022.
After the report was released, the stock dropped as much as 25% in after-hours trading.
During Netflix’s fourth quarter, the company’s profit was $1.5 billion, down from $1.7 billion in the year-ago quarter. Revenue was up 9.8% to $7.8 billion, up from $7.6 billion.
There can be no overstatement of how bad this is for the company that right now is the king of streaming. It is not the first time that Netflix has seen its stock price plunged by more than 40% year to date, and coming into Tuesday’s earnings analysts were concerned about Netflix’s future growth – concerns that were put to rest when the company missed not only its own expectations but lost thousands of subscribers with it as well – something the company hasn’t seen in more than a decade.
