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Netflix’s shocking report results in one of the worst-performing weeks in the tech-heavy Nasdaq index in the first quarter.
A shocking subscriber and user report were released by Netflix this morning. The company lost over 200.000 subscribers by the end of the first quarter. The losses of Netflix were the first of their kind over the last decade.
The Wall Street princes have fallen, and investors are worried about the long-term effects on the company, S&P, and the tech-heavy Nasdaq 100.
Moments after the release of the report, the company’s stock fell sharply, recording one of the biggest losses in the company’s history since 2004. At first, the company lost 25% of its share value, and now it’s down by 36%, and the number continues to fall.
The Wall Street indexes are marking one of the worst performances for the S&P and Nasdaq, in one of the worst-performing weeks in the history of the three major industries.
The global tension and the fast increases in prices have already injured the big 500 and the tech-heavy Nasdaq 100 this week.
What happened to Netflix today? For the first time since 2011, its stock fell by 35% and is now worth $224 per share. Yesterday, the company’s share price value was estimated at $348.42 per share, meaning its share prices lost more than $119 in a single day.
It is undoubtedly these losses will affect Netflix’s future gains and performance, since the company already released a report in February that indicated there are actual problems and challenges facing the company.
The number of users is considered the first component that investors look to build into their long-term investment strategies. or to decide whether the company suits their financial needs. Losing a 200.000 customers harms the company and, as a result, its stock.
The Nasdaq next declined by 115 basis points, to 13,502.80 basis points today, as a result of the shocking report. On top of that, Meta shares plummeted by 7.30% to $201 on Wednesday morning, according to Wall Street.
This week, Meta, Netflix, and Pay Pall all registered losses along with other major names, which makes this week the worst performing week.
The present itself now has its inflation and its effect on the decisions of consumers, and not only on Netflix. Consumers are more likely to abandon services as prices rise, believing that their money should now be spent on necessities.
At the end of the day, Netflix and similar platforms consider non-essential expenses, luxury expenses. The market is in a hot spot, so people now would rather leave the service rather than suffer more.
Netflix officials know that, so that’s why they plan to introduce new rules and regulations. A more cheap and more affordable signing service
Yet, even if the company does that, it will be hard to find new subscribers due to the high competition with Disney+, Amazon Prime, HBO Max, and more…
Plus, there is the Federal Reserve’s tightening policy that is still a concern for the S&P and Nasdaq. All these factors are considered relevant aspects to the company’s future growth and the U.S economy’s rebound.
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