The actions of Netflix plummeted 36% this Wednesday following the opening of Wall Street due to the heavy loss of subscribers announced this week.
After half an hour of starting its operations on the stock market, the shares of Netflixfell by US$125.26 to settle at US$223.35 per share.
According to Bloombergwith this collapse Netflix extends its fall this year to 60% and becoming the stock with the worst performance in the S&P 500 and the Nasdaq 100.
With this situation, the agencies warned that the company was preparing for its worst day since October 2004, also impacting the entire Nasdaq index.
The analysts of Wall Street They warn that this might be the end of the boom associated with the pandemic, since their business took off during the confinements due to COVID-19, but that scenario is “cloud” with the return to normality.
Why are Netflix shares falling?
Recently the platform streaming reported that it registered a loss of 200,000 subscribers between January and March of this 2022, its first reduction in subscribers in more than a decade.
This figure contrasts with the expectations of adding 2.5 million in the first months of the year, but which ultimately did not materialize given the increased competition between companies the “streaming”
In addition, Netflix reported profits slightly lower than the first quarter of the previous year, of US$ 1,597 million.
The company attributed this drop in its results to factors such as the inflationthe economic effects of the war in Ukraine and the stoppage of filming due to the coronavirus.
For now, Netflix It has already anticipated that in the following quarter it will lose another 2 million subscribers and is evaluating offering a subscription model with ads for a lower price.