Netflix – Stock plunges 35%

The company reported Tuesday that it lost subscribers for the first time in more than a decade. The news shocked Wall Street and sent shares down 35% Wednesday morning, wiping out $50 billion in market cap. And this was after the company’s stock had dropped more than 40% year to date. Simply put, Netflix’s terrible 2022 has now become disastrous.

“What worked until this point may not be working anymore,” Michael Nathanson, a media analyst commented at MoffettNathanson. “The world’s changed.”

The question for Netflix, once the untouchable king of streaming, has gone from “what’s next?” to “what now?”. As if that wasn’t bad enough, Netflix said it expects to lose another 2 million subscribers in the current quarter.