Home Tech News Netflix shares plunge more than 35 percent after reporting a drop in...

Netflix shares plunge more than 35 percent after reporting a drop in users and revenue

Netflix shares plunge more than 35 percent after reporting a drop in users and revenue

The actions of Netflix lost more than a third of its value on Tuesday after it reported its first drop in subscribers in a decade, leaving Wall Street to question its growth in the face of fierce competition and post-pandemic viewer fatigue.

After the first negotiations on Wall Street, the shares of the streaming pioneer fell 35% to $223 and they were headed for their worst day in a decade if losses continue. At least a dozen analysts were quick to temper their views on a stock that has been an outstanding performer in recent years.

“Netflix is ​​an example of what happens to growth companies when they lose their growth,” said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh. “People buy growth companies because they think their cash flow is going to grow, so they pay upfront to anticipate that. When a stock like this falls, growth-seeking people quickly fold.”.

[article_mb_code]

The plunge in shares could erase the gain of the past two years, when his business boomed as new customers joined his platform to weather lockdowns.