Netflix stock price plummeted by more than 30%, sharp drop for the first time in 18 years | Reuters

In the US stock market on the 20th, the stock price of Netflix, a major US video distribution service, fell by more than 30%. Taken on the 19th (2022 Reuters / Dado Ruvic)

[Reuters]— In the US stock market on the 20th, the stock price of Netflix, a major US video distribution service, fell by more than 30%. The number of subscribers in the first quarter began to decline for the first time in about 10 years, raising concerns about the company’s growth.

Netflix’s share price is down 37% to $ 220.40. The rate of decline is the largest in about 18 years.

“Netflix has set an example of what happens when a growing company loses growth,” said Kim Forest, CIO of Bokeh Capital Partners. Investing in growing companies is premised on cash flow growth, but he said that if stock prices plummet, investors seeking growth will soon withdraw.

JP Morgan halved its target price to $ 305, well below Wall Street’s median forecast of $ 400. The outlook for the number of subscribers in 2022 has also been lowered to 8 million, which is half of the previous forecast.

Piper Sandler said, “We are at a turning point in our business. The number of subscribers is slowing and it is unlikely that we will return to the pre-pandemic net growth pace.”

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