Netflix shares dropped 36% after announcing that its first quarter subscriber numbers had fallen for the first time in 10 years, and the stock is now off more than 67% year to date.
High profile investors such as Bill Ackman sold their holdings after the company forecast further falls to come in the second quarter, despite a strong release slate. Netflix is not alone as other ‘stay-at-home winners' are struggling to lap last year's numbers, facing higher costs and dwindling demand. The pandemic boost may have obscured some underlying trends that were mounting anyway. Other companies had been encroaching on Netflix's territory - for example companies with valuable IP (Disney, with its Marvel, Pixar and original franchises) and those that have considerable distributio...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
