Netflix loses $50 billion in market cap in just 24 hours after reporting its first subscriber loss in 10 years.

The streaming platform reported a loss of 200,000 subscribers compared to the previous quarter, with even bigger losses to come: Netflix is ​​anticipated to lose as many as two million subscribers in the second quarter.

While it remains a titan of home entertainment, and perhaps even the most ubiquitous, Netflix’s dominance has been diluted by competitors like Disney+ and Amazon Prime, not to mention recent price gouging and Russian sanctions.

As a result of the news, Netflix shares fell 35%, down 62.5% so far this year, making them the worst performing stocks of the year in the S&P 500, BBC News reports.

For example, William Ackman, considered a renowned American financier, abandoned his $1.1 billion (£840 million) investment in Netflix, and even suffered a loss of more than $400 million (£306 million). .

This drop saw Netflix shed more than $50bn (£38bn) from its market cap, and investors on Wall Street were concerned about its long-term potential given that it is a household name and still experiencing such massive losses. .

In a note to its shareholders, Netflix wrote: “Our revenue growth has slowed considerably as our results and forecasts below show. Streaming is gaining ground on linear, as we predicted, and Netflix titles are very popular worldwide.

#Netflix #loses #billion #hours #Khaama #Press #News #Agency

Original news source link

Leave a Reply

Your email address will not be published.