It’s been revealed that Netflix’s shares have drastically dropped basically overnight and the company is back to pre-pandemic numbers on the stock market.
During the pandemic, Netflix’s share prices were going through the roof, and now they’ve come crashing down.
It was also revealed that Netflix is expecting to add just 2.5 million subscribers in this quarter of 2022.
This number is much much lower than what Wall Street estimated.
The number would mean that the beginning of 2022 would be the slowest start of a new year for the streamer in the last ten years.
As for Netflix’s shares, they dropped to as much as 20% to $404.50 in after-hours trading.
This ended up erasing about $45 billion in Netflix’s market value as investors prepared for the streaming platform to begin a new phase of much slower growth.
Is Netflix in trouble after this drop in its share prices?
Interestingly enough, Netflix wasn’t the only entertainment company to suffer.
It was revealed that Walt Disney Co. and Roku Inc. also experience pretty significant share slumps.
In 2021, Netflix managed to add just 18.2 million customers which was down about 50% from the record year before.
And the company is also forecasting much slower growth in the future, at least for another quarter of the year.
This new forecast came very short of Wall Street’s projection for 6.26 million new subscribers.
What do you make of this news?
Are you worried about Netflix’s share prices at all?
Let us know your thoughts in the comments below.