Netflix shares fall 20% despite achieving profits that exceeded expectations

Sharp declines of 20% witnessed by a stock Netflix Inc Netflix yesterday in trading after the closing, after it expected to increase its subscriber base by 2.5 million new subscribers during the first quarter of this year, which came much less than analysts’ expectations.

These estimates come after Netflix added eight million and three hundred thousand subscribers in the last quarter of last year, which was slightly lower than expectations.

However, the company recorded strong results in the fourth quarter of 2021, as net profits far exceeded expectations and achieved a growth of 12% to $607 million. Revenues came in line with expectations, growing 16% to reach $7.7 billion.

Subscribers in 2021

In detail, Netflix did not meet Wall Street expectations for the number of new subscribers at the end of last year and provided weaker expectations in early 2022, as competition intensified in the battle for viewers of online broadcasting services.

The world’s largest streaming service added 8.3 million subscribers from October to December, when it released a slew of new shows including star-studded movies like “Red Notes” or “Red Note” and “Don’t Lock Up” or “No”. Looking Up”, as well as a new season of the series (The Witcher), according to Reuters.

The company’s total subscribers in the world reached 221.8 million in 2021.

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