This Wednesday (20) is not being easy for Netflix. After revealing the loss of 200 thousand subscribers between January and March of this year and estimating a new setback of 2 million users for the 2nd semester, the company faces its worst day on the Wall Street stock exchange.
Until the publication of this note, the shares of the streaming platform were quoted at US$ 221.10 (down 36.57%) — the shares hit US$ 220.40 (down 37%) earlier. In effect, it was Netflix’s worst day on the stock market in nearly 18 years.
“Netflix is an example of what happens to growing companies when they miss out on that growth,” said Kim Forrest, chief investment officer at Bokeh Capital Partners. “People buy [ações de] growing companies because they think their cash flows are going to grow, so they’re paying for it upfront. When a stock like this goes down, people looking for growth quickly back off.”
As a result, broker JP Morgan (as well as other financial institutions) made an aggressive move and halved the forecast for Netlifx shares to $305. That’s because, according to an analyst at the company, there are no good prospects in the coming months.
“Short-term visibility is limited… and there’s not much to look forward to in the coming months other than the much lower new share price,” said Doug Anmuth, an analyst at JP Morgan.
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Better days for Netflix?
The fact is that Netflix already expected a quick response from the market – perhaps not in these proportions. In any case, to its shareholders, the streaming platform has announced some measures to avoid even greater losses in the near future.
The first would be to close the siege against account sharing, which may not be so beneficial for the company. The logic is simple: limiting accounts only to people in the house should force “outside” users to open other accounts. And more bills, more money.
In addition, the platform is studying a cheaper plan, but which will show ads during programming – something similar to what already happens on HBO Max and Disney+.
It remains to be seen if these measures will be enough to prevent the abandonment of new users, if they will also serve to the adhesion of more subscribers and, perhaps one of the most crucial points for Netflix, will calm the company’s shareholders.
Via: Reuters
