Netflix (NFLX) stock price is down ahead of high-stakes gains


Light, Camera, Merit!

Streaming giant Netflix will release itss First Quarter Earnings Report on Tuesday, and investors will be watching to see if the company can recover from a disappointing fourth-quarter earnings release in January that showed slowing subscriber growth.

After the release of the last report, Netflix’s stock price dropped more than 25%. In an increasingly crowded streaming market, investors are likely eager to see if the company was able to stage a price correction in the first quarter. But it’s also little consolation, as competitors are springing up left and right, eating up Netflix’s market share at a time when inflation-weary consumers are becoming more price-conscious.

Overall, this has caused Netflix’s stock price to fall roughly 43% year-to-date.

“Consumers have always had many options when it comes to their entertainment time – a competition that has only intensified over the past 24 months as entertainment companies around the world develop their own streaming offerings,” the company said wrote in its Q4 2021 letter to shareholders. “While this additional competition may hamper our marginal growth somewhat, we continue to grow in all countries and regions where these new streaming alternatives have been launched.”

With 222 million paying users, Netflix still leads the streaming package. But the competition is intensifying.

Disney is hot on his heels 196.4 million between Disney+, ESPN+ and Hulu; it is targeting up to 260 million by 2024. HBO Max and HBO ended 2021 with almost 74 million combined subscribers, Paramount+ has more than 56 millionand Peacock from NBCUniversal 9 million paying subscribers, after diversity. Apple, which doesn’t report subscription numbers for its Apple TV+ streaming service, had less than 20 million paid subscribers less than a year ago.

With that in mind, here are some things to keep an eye on Netflix publishes its report on Tuesday at 3pm PST:

  • Subscriber Growth: After a sharp drop, will Netflix turn around in terms of subscriber growth in 2021? Some analysts written down that Netflix had a stronger start to the first quarter than expected, and if it pulls off that, investors could be in for a pleasant surprise. The company expects to add 2.5 million new subscribers for the quarter.
  • content arms race: Netflix continues to bring out big names and A-listers to beef up its original content, a roster that includes former President Obama, Ryan Reynolds, Duane Johnson and Gal Gadot. But will it be enough to go head-to-head with other blockbuster originals from competing streaming services? HBO Max will be releasing one later this year game of Thrones prequel seriesand Amazon Prime releases a Lord of the rings Show – these are just two of the many movies and TV shows with built-in audiences that subscribers could be pulling from Netflix.
  • expand offers: The key to more subscribers? Another open question is whether Netflix’s attempts to expand its offerings will pay off. That includes Netflix Excursion into gamingand experimental new content like Exploding kittenswhich will be a combination of TV series and game. Netflix (NFLX) stock price is down ahead of high-stakes gains


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