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Why Netflix Stock Plummeted 35% This Week

Netflix stock

It is important to note that over the last ninety days there have been thirteen downward revisions for EPS versus one upward revision. While the situation in India may prove problematic, Netflix launched an initiative that could presage another revenue stream for the company.

We’ll ask you to confirm this for your first post to Facebook. Netflix also faced criticisms after Ricky Gervais’ comedy special released on the streaming platform on Tuesday. The show reportedly has similar anti-trans tones that were depicted in Chappelle’s piece. Recalling the stock’s 2011 crash, the CEO of Netflixsaid the company’s 75 percent stock drop was ‘horrifying, disappointing and embarrassing,’ CEO Ted Sarandos told The New York Times. If DotBig stays below this area, bulls have to be aware of the potential for it to test down into the $200 level and the 50-quarter moving average . Put it all together and Netflix stock is suddenly down almost 70% from its all-time high as the stock works on logging its sixth straight monthly decline.

Netflix Inc Stock Underperforms Wednesday When Compared To Competitors

Although Netflix is still priced as a growth stock, the P/E and PEG levels are far below the company’s 5-year averages. Analysts forecast revenue to grow by 12.4% in 2022, although full-year earnings will remain near $11 per share.

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  • While it grew rapidly in the last five years ending 2020, the online streaming industry is expected to decelerate slightly in the next five.
  • And after Netflix raised subscription prices in the U.S. and Canada, cancellation traffic increased 0.5% in the first quarter.

It’s hard to tell what will happen in the next year+, so investors are focusing on right now. It’s true that Netflix reported bad news, but it wasn’t horrific news.

Research Reports For Nflx

However, NFLX has harvested most of the low-hanging fruit, and during much of its existence, the company had little competition. The company’s planned content budget, as well as forecasts related to free cash flow and other profit metrics, will be closely monitored. Aside from the cash on rival’s balance sheets, NFLX has a significantly lower debt profile. Although S&P bumped its rating for the company to BBB/stable, Moody’s rating remains Ba/1 positive, a notch below investment grade. Perhaps the only hope for bulls is that expectations are now so low that Netflix will be able to exceed them.

Netflix stock

Also, remember that COVID-19 put a lot of new production on hold. For example, seasons 3 and 4 of the wildly-popular Stranger Things were both delayed due to COVID-19. Netflix is probably still working through these types of production issues with many of its shows. As mentioned, Netflix estimates that 100 million households share passwords. Addressing this issue is an easy way to instantly pad its bottom line. Based on this alone, does it sound like should be down 70% so far in 2021? Of course, there’s the issue of declining users to address.

Meta, Netflix Drag Down Communication Services

Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security. By creating a free account, you agree to our terms of service. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. One share of NFLX stock can currently be purchased for approximately $192.91. Netflix is scheduled to release its next quarterly earnings announcement on Tuesday, July 19th 2022.

Harry Styles Makes $300 Music Video With James Corden

However, Netflix estimates that its service is shared with an additional 100 million households. There’s a fairly good chance that you reading this don’t even pay for your own Netflix account. Or, if you pay for it, there’s a good chance you’ve shared NFLX stock it with at least one person before. View our full suite of financial calendars and market data tables, all for free. Real-time analyst ratings, insider transactions, earnings data, and more. Netflix’s stock split on Wednesday, July 15th 2015.

In this article, I will explain why I’m still bullish on NFLX shares and provide a contrarian viewpoint that others may have overlooked. I was working at a prestigious company making a good living for myself. It’s hard to give up a salary — something tangible — for intangible things like your youth and your time.

Nflx: Many Manifest Strengths

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Netflix has already released a beta version for streaming video games. This is a great step in diversifying its business and attracting new customers. NFLX stock price today It has also toyed with the idea of introducing ads. This would allow it to offer a free subscription, which could draw in budget-conscious viewers.

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