Causes of Netflix Stock Drop 35%

Rancakmedia.com – You need to know that there is shocking news from the Netflix platform which has experienced a decline, along with the reasons why Netflix shares have fallen by 35%.

The giant streaming platform announced a drop in stocks that tumbled a lot. Netflix shares fell by 35% in their biggest drop since 2004.

As a result, Netflix made a potential loss of $400 million. So what causes it?

List of Causes of Netflix Stock Drop

Netflix said that its share price fell 35% in the first quarter of this year, resulting in a loss of $400 million. This comes after they lost around 200,000 subscribers in the first quarter.

In fact, management estimates that Netflix will lose up to 2 million more subscribers this quarter.

This is the result of many things, including the pandemic. At the start of the pandemic, many countries imposed lockdowns.

As a result, many people feel bored at home and turn to streaming services like Netflix for entertainment.

However, recently the laws governing the pandemic have begun to be modified so that many individuals spend relatively little time on streaming platforms.

In addition, Netflix temporarily suspended its services in Russia resulting in a net loss of 700,000 subscribers, but at that time also saw an increase of 500,000 subscribers.

This is partly due to the fact that too many consumers share accounts, which reduces the number of new customers.

Tighter competition is also suspected to be one of the reasons for the large decline in Netflix shares.

Indeed, currently many other streaming platforms are starting to mushroom, such as Desney+ Hotstar which presents many things about the Marvel Universe.

There is little doubt that tough competition is causing a decline in paying clients. To maintain its position as the leading streaming service, Netflix appears to need a significant platform change.

Conclusion

Netflix said that its share price fell 35% in the first quarter of this year, resulting in a loss of $400 million. This comes after they lost around 200,000 subscribers in the first quarter.

In the article above, we have discussed the reasons for Netflix's stock dropping, and this is the first-time biggest drop in shares on the Netflix platform.

Thus the article about the Causes of Netflix Stocks Dropping 35%, I hope the article above can be useful and helpful for all of you.