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published in Blogs
Apr 20, 2022
Netflix (NFLX, $217.17) shares drop -37%, on shocking subscriber loss

Netflix (NFLX, $217.17) shares drop -37%, on shocking subscriber loss

Shares of Netflix plunged -37% Wednesday morning, after the streaming giant reported a loss in subscriber count Tuesday evening-- for the first time in more than a decade.

On Tuesday, Netflix posted its first quarter earnings of $3.53, well above the $2.89 expected by analysts polled by a Refinitiv survey of analysts.

The company’s revenue rose +10% year-over-year to $7.87 billion in the quarter, vs. $7.93 billion expected according to a Refinitiv survey of analysts.

But what probably surprised markets the most was the streamer’s global paid net subscriber number that registered a loss of -200,000 compared with 2.73 million adds expected, according to StreetAccount estimates.

The company mentioned that the suspension of its service in Russia resulted in a loss of 700,000 subscribers, and that excluding that impact, it would have experienced 500,000 net additions during the quarter.

Related Tickers: NFLX