Netflix stock was nailed on Friday with its worst single-day percentage decline since 2012.
The stock lost 21.7%, the largest percentage drop since July 25, 2012, when shares fell 25%, as recorded by the Dow Jones Market Data Group. Shares are down 33% this year, with added pressure as investors flee technology stocks.
|I: COMP||NASDAQ COMPOSITE INDEX||13768.921815||-385.10||-2.72%|
MEAT LOAF BECAME “BAT OF HELL” ON TRUMP’S “THE APPRENTICE”
The streaming giant added 8.3 million subscribers in the fourth quarter, just short of the 8.5 million estimate. Forecasts for the current quarter also disappointed with plans to add 2.5 million versus 4 million in the same period last year.
Still, the total number of subscribers worldwide reached 222 million.
“Overall, the business was healthy. Customer retention was strong. Churn was down. Viewing was up. But on a side note, we just — we didn’t grow the acquisition quite as fast as we would have liked,” said Chief Financial Officer Spencer Neumann on the conference call.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
|DIS||THE WALT DISNEY CO.||137.38||-24.10||-6.94%|
Why the slowdown? CEO Reed Hastings said he and his team are trying to figure that out.
“There are a number of possible explanations for COVID, but then we worry that we’re getting too attached. There’s more competition than ever. But we’ve had Hulu and Amazon for 14 years. So it doesn’t feel qualitatively changing there. And overall, trusting streaming becomes entertainment. Linear dissipates over the next 10 to 20 years. Very high confidence in this thesis because everyone comes to streaming. So like the market size, very big. Our execution is steady and getting better and better. For now we’re just keeping calm and trying to figure it out,” he said.
The second season of Bridgerton and The Adam Project will be released in March.