Netflix, reported record loss of subscribers in the first quarter!
While Investors had expected that the company would add new users. Instead,
Netflix said it ended the first quarter with 200,000 fewer subscribers than it had, and it expected to lose two million global subscribers by the end of the year!
- The drop wiped out over $40 billion of its market capitalization, according to FactSet.
The last time Netflix shares fell 25% on a single day was July 25, 2012, according to FactSet.
*CNBC Tweet on Netflix fall
— CNBC Now (@CNBCnow) April 20, 2022
Netflix stock is down more than 40% for the year over year basis.
Netflix, is set to explore offering a lower priced ad-supported version of the platform to boost its subscriber base, a shift for a company that has sold itself since its inception as a commercial-free haven for its members.
However, the company had increased its subscription fee earlier this year, and it is announcing that will halt the shared-password in between subscribers, that could further hamper the company, in long term basis.