Tuesday, February 27, 2024
HomeBusinessNetflix stock down 20% after earnings show growth slowdown

Netflix stock down 20% after earnings show growth slowdown

Date:

Related stories

Is Carrie Underwood pregnant again? Know details

Is Carrie Underwood pregnant? If are you curious to...

8 Secrets of Successful Gamblers

Stepping into the world of online gambling with the...

8 Popular Gambling Rituals: Do They Work?

Ever wondered if those quirky rituals you see at...

Maximizing Wins: Tips for Successful Crypto Gambling

Ready to make your crypto work as hard as...

The Role of Data Analytics in Casino Management

The casino industry generates massive amounts of data on...


Reed Hastings, Co-CEO, Netflix speaks at the 2021 Milken Institute Global Conference in Beverly Hills, California, U.S. October 18, 2021.

David Swanson | Reuters

Netflix shares are down 20% in premarket trading Friday after the company quietly admitted in its fourth-quarter earnings that streaming competition is eating into its growth. If it remains down more than 20% until close it will be Netflix’s worst day since Oct. 16, 2014, when shares fell 19.3%.

Despite beating analyst expectations on the top and bottom line and in user numbers for the quarter, the admission seemed to rock investors. Netflix executives have infamously pointed to things like sleep as potential competitors, claiming anything else users could be doing with their time is competition. But even as the streaming wars heated up with Disney and even CNBC owner NBCUniversal entering the mix, Netflix leaders mostly maintained resolved about the new competition.

“While this added competition may be affecting our marginal growth some, we continue to grow in every country and region in which these new streaming alternatives have launched,” the company said in its shareholder letter on Thursday.

The question of competition is even more crucial given Netflix raised prices just last week in the U.S. and Canada, raising its standard plan from $13.99 to $15.49. With other alternatives, higher prices could become a trickier gamble.

KeyBanc Capital Markets analysts lowered their rating on the stock from overweight to Sector Weight following Thursday’s earnings release. They wrote in a note that among the reasons they are less confident in the outlook is that, despite an improved content slate, the company still experienced challenges to its gross adds.

See also  When stars align: MS Dhoni meets Tamil superstar Vijay on sets of Beast

Piper Sandler analysts, which maintained an overweight rating on the stock while cutting its target price from $705 to $562, wrote in a note Friday that it still “remains early days” for subscriber growth opportunity overall.

“The other regions we think look nascent and likely to return worldwide net adds to the 20MM+ annual growth range. It remains early in the transition away from linear TV and opportunities like gaming and merchandising have yet to take hold,” Piper Sandler wrote.

Subscribe to CNBC on YouTube.

WATCH: AMD, Peloton, and Netflix are some of today’s investments: Pro Market Movers Jan. 20



Source link

Bellie Brown
Bellie Brownhttps://businesstimes.org
Hi my lovely readers, I am Bellie brown editor and writer of Businesstimes.org. I write blogs on various niches such as business, technology, lifestyle., health, entertainment, etc as well as manage the daily reports of the website. I am very addicted to my work which makes me keen on reading and writing on the very latest and trending topics. One can check my more writings by visiting Cleartips.net

Latest stories