Netflixthe global streaming giant, which hoped to gain 2.5 million additional subscribers in the first quarter, has, on the contrary, largely lost some for the first time in ten years, and expects to lose more in the second quarter.
Market capitalization bottoms $40 billion as global streaming giant tumbles 40% at open Bourse to Wall Street.
Berezina at the Bourse of New York, for Netflix. The action of the streaming giant melts by 40%, harshly sanctioned after the loss of 200,000 subscribers in the first quarter of 2022. The value in Bourse loses over $40 billion. The pioneer of the sector, which hoped to gain 2.5 million additional subscribers has, on the contrary, largely lost for the first time in ten years, and expects to lose more in Q2. The group attributes the erosion of its number of customers during the past quarter to the suspension of its service in Russia following the invasion of Ukraine by Moscow.
The group also suffered from the backlash of the upturn in subscriptions caused by the confinements linked to Covid-19. This influx of subscribers dried up with the resumption of activity. In addition, the fierce competition that has flourished in streaming and inflation have weighed on the performance of the group, which is now considering using funding. ” Netflix indicates that it expects another 2 million fewer subscribers in the 2nd quarter and begins to find solutions to charge the 10 million users who benefit from it for free by sharing access codes”, underlined Kenneth Leon, analyst for CFRA which lowered its share price estimate.
With AFP