The shares of Netflix has been dropped by more than 35 percent on Wednesday 20th April 2022, after the company recorded that, it has lost its subscribers for the first time in over ten years. The results and weak outlook has led to a wave of the down fall from the Wall Street on the fears over the long-term growth potential of the company.
This decrease has caused Netflix to shave over 50 million dollars off the market capital of the company and now, it has been the worst performing stock of 2022. Netflix said that, many of the headwinds have been affecting the growth of the share, which is including the increasing competition along with lifting the novel corona virus pandemic restrictions.
The business of Netflix has been benefitted from the novel corona virus along with more people that were seeking out the digital environment. But in the recent months, the people are spending less time on the digital platforms because of the launch of the novel corona virus vaccines and ease in covid-19 restrictions.
The slower household broadband growth has also been responsible for the weak forecast of the company and Netflix has estimated that, around 100 million households have been sharing their subscription passwords with their family and friends.
In an effort for boosting the growth, the company said, it is considering a crackdown on the password sharing and less-priced advertisement-supported tier is coming.