Bad news for Netflix and its service, as their stock drops as they lose $54 Billion, Market Cap. Their shares have plummeted to their lowest since January 2018. They are bleeding money and losing subscribers. The stock went down 35.1% on Wednesday to $226.19 per share. This signifies the largest one-day drop in stock percentage for Netflix. Their second-biggest drop was $49 billion lost in market capitalization overnight back in January. The streaming service previously released its Q1 loss of 200,000 subscribers and has predicted it will lose another 2 million in its second quarter. The streaming giant has plummeted by a whopping 65% in the past six months alone. Netflix has said that it has over 100 million “freeloaders” using other people’s accounts. The media giant is now in survival mode after its $54 Billion market cap. It has been exploring more strategies to combat its monetary difficulties and loss of subscribers.
Shares Have Plummeted, and Netflix Blames Freeloaders
Netflix estimates that more than 100 million households are using a shared password without paying for it. Reed Hastings, the CEO of Netflix, says the company’s problems stem from the streaming service competitors and the freeloaders. The company has also cited the war in Ukraine as a reason why broadband rollout is slow. Stock drops to record numbers for Netflix because war has not been good for business. Like many of its streaming competitors, they are currently exploring possible lower-priced plans with ads. So any subscribers that sought out Netflix because it doesn’t have ads will not be too happy. Their plans have gradually grown more expensive and will mirror television once ads are added to plans. Its loss of $54 billion market cap has the streaming service in a panic. The stock drops, and subscribers are dropping Netflix service; things are not looking good.
Only time will tell if their strategies to isolate the “freeloaders” and the rollout of ad-supported plans works for or against them.