The share price of Netflix Inc (NASDAQ: NFLX) plunged 25.73% to $258.90 after hours following the report of loss in subscribers for the first time in 10 years.
NFLX closed 3.18% higher on Tuesday at $348.61 per share, but made a sharp plunge by 25.73% to $258.90 after hours.
The company on Tuesday reported a loss of 200,000 subscribers during the first quarter of 2022, marking its first loss in paid users since October 2011. Initially, the company expected to add 2.5 million net subscribers during the first quarter this year. During the same period of last year, NFLX added 3.98 million paid users. Now, the company expected a loss of 2 million paid subscribers for the second quarter.
“Our revenue growth has slowed considerably,” wrote the company in a letter to its shareholder on April 19. “Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally.”
“However, our relatively high household penetration – when including the large number of households sharing accounts – combined with competition, is creating revenue growth headwinds. The big COVID boost to streaming obscured the picture until recently,” added NFLX.
