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Netflix shares fell after slowing subscriber growth

by Carl Steward
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Netflix, Slowdown, shares, the companyNetflix shares fell after slowing subscriber growth

After slowing subscriber growth, Netflix reported its shares plunged over 20% in after-hours trading to the lowest levels since late 2020.

Netflix reported fourth-quarter earnings on Thursday.

Here are the key numbers:

  • Earnings per share (EPS): $1.34 vs83 cents expected in a Refinitiv survey of analysts
  • Revenue: $7.72 billion vs. $7.72 billion expected, according to Refinitiv
  • Global paid net subscriber additions: 8.29 million vs. 8.18 million expected, according to StreetAccount estimates

In the fourth quarter, Netflix added 8.29 million global paid net subscribers. According to StreetAccount estimates, analysts predicted the company would add 8.18 million. But that’s fewer than the 8.6 million subscribers in Q4 2020. The same figured it had forecasted for 2021, but its outlook worsened.

The company said it expects to add 2.6 million subscribers in the first quarter of 2022. This estimation is far below the 3.97 million it added in Q1 2021. According to StreetAccount estimates, analysts expected 6.93 million in the first quarter.

Netflix naming the reason for the slowdown

Netflix said it has big premieres set for March. But that is similar to the vision it had painted heading into Q4. Netflix and analysts had expected a significant jump in customers at the end of 2021. This time the company released new TV shows and movies. For example, during the fourth quarter, Netflix released high-performing content. This content included “Red Notice,” “Emily in Paris,” “You,” and “Don’t Look Up.”

The company said that the slowdown was increased competition from other companies. In the past, the company said that companies such as Apple and Disney could not materially affect growth.

Netflix said that customers have always had many choices for entertainment. However, competition has intensified over the last year after entertainment companies worldwide developed their streaming services.

The post Netflix shares fell after slowing subscriber growth appeared first on forexinsider24.com.

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