Netflix’s action collapsed by almost 40% on Wednesday morning on the New York Stock Exchange, harshly sanctioned following the loss of 200,000 subscribers in the 1st quarter of 2022.
The valuation of the American streaming giant melted on Wall Street, losing more than 40 billion dollars, according to the financial analysis tool Factset. The title was worth 218 dollars, down 37.24% around 2:20 p.m. GMT.
The pioneer of the sector, which hoped to gain 2.5 million additional subscribers has, on the contrary, largely lost for the first time in ten years, and plans to lose more in the 2nd quarter.
The group attributes the erosion of its number of customers during the past quarter to the suspension of its service in Russia following the invasion of Ukraine by Moscow.
The group also suffered from the backlash of the upturn in subscriptions caused by the confinements linked to COVID-19. This influx of subscribers dried up with the resumption of activity.
In addition, the fierce competition that has flourished in streaming and inflation have weighed on the performance of the group, which is now considering using funding.
“Netflix indicates that it expects another 2 million fewer subscribers in the 2nd quarter and is beginning to find solutions to charge the 10 million users who benefit from it for free by sharing access codes”, underlined Kenneth Leon , an analyst for CFRA which lowered its share price estimate.
