It’s been a couple of rough days for Netflix and Wednesday saw its stock price just collapse in a really big heap. The company stock slipped down more than 35% and ends up at $226.19 per share. This comes on the heels of Netflix dropping $54.4 billion in its market capitalization. A lot of this has to do with shedding 200,000 subscribers from Q1. That’s not good for the subscription service.
Netflix Stock Collapses As Company Deals With Multiple Issues
That market capitalization number is the largest one-day decline in Netflix history. When was the second-biggest drop? Back in January 2022 at $49 billion. At the time, the company did warn that there was a period of slowed-down growth happening. Netflix shares hit that share total, which is a four-year low on Wednesday’s numbers.
“I know it’s disappointing for investors, and it is for sure,” co-CEO Reed Hastings said on Netflix’s Q1 video interview Tuesday according to a story from Variety. “But internally, we’re really geared up, and this is like our moment to shine. This is when it all matters. And we’re super focused on achieving those objectives and getting back into our investors’ good graces.”
Elon Musk Calls Streaming Platform ‘Unwatchable’ In Recent Comments
Netflix’s actions to monetize password-sharers and roll out an ad-supported tier aren’t really going to help the U.S. business in the near term, according to Neil Macker, who is a senior equity analyst at Morningstar. That firm is now lowering its price target on Netflix shares from $305 to $280 per share. Morningstar is doing so under the expectation that there will be much lower subscriber growth in 2022 and slower margin expansion.
In other Netflix-related news, Elon Musk went on Twitter to say that it has become “unwatchable” due to the company’s “woke mind virus.” Netflix has pulled the plug on about 700,000 accounts based in Russia. That was done in support of the Ukrainian government. So, Netflix forecasts another 2 million subscribers could leave by this summer based on some projections. This is leaving company management scrambling for desperate options like advertisements and crackdowns on password sharing.
If you have Netflix, then you know that you have a “thumbs up” or “thumbs down” option. Well, Netflix is working on a “Two Thumbs Up” feature. It would allow viewers to let Netflix know that they liked what they saw. Netflix says users have been wanting this for a long period of time.
“We’ve been hearing from members that it’s important for them to distinguish [between] shows they liked and the shows that they really loved,” said Netflix director of Product Innovation Christine Doig-Cardet. “And that distinction was important to them.”