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Netflix loses 46 billion dollars on the stock market,
Netflix’s shares will open 30 percent lower on Wednesday at the opening of the American stock exchange, good for a loss of about 46 billion dollars (about 42.5 billion euros) in market value.
The streaming giant announced in the night from Tuesday to Wednesday that for the first time in ten years more subscribers have dropped out than have joined.
Netflix lost 200,000 subscribers last quarter, while it had expected 2.5 million new subscribers to join. The streaming service currently has 221.6 million subscribers.
The American company blames the loss of customers on high inflation, the war in Ukraine and fierce competition from other streaming services. For this quarter, Netflix predicts losing another two million subscribers.
The past two years have been a goldmine for Netflix because people worldwide had to stay at home due to the corona pandemic. As a result, many people purchased a streaming subscription. In the meantime, everyone can go to the pub or the cinema again and people cancel their subscription.
The fact that the prices of foodstuffs such as food and electricity have risen sharply in recent months also plays a role in this.
Netflix loses 46 billion dollars on the stock market after poor results
Netflix said Wednesday for the first time that it is open to the idea of offering low-cost subscriptions with advertising. In addition, the company hopes for additional income through customers who share their account with friends or family outside their home.
Netflix’s first-quarter revenue rose 10 percent to $7.87 billion, slightly less than expected on Wall Street.
The company reported net earnings per share of $3.53, higher than wall street’s forecast of $2.89.
Netflix loses 46 billion dollars on the stock market after poor results
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