Netflix Loses $50 Billion In Value Overnight

Netflix provides a wide range of award-winning series and movies, as well as its own productions known as Netflix Originals. Wall Street is concerned about the streaming giant’s growth prospects. Netflix’s market capitalization plummeted by $50 billion almost overnight.

Netflix announced on Thursday that it has nearly met its self-ascribed target of 222 million subscribers by the end of 2021. Nearly isn’t good enough for investors, who worried so much that Netflix’s stock price dropped by more than $100 overnight. The total value of all outstanding shares is referred to as market capitalization. Netflix had its worst 24-hour stretch on the stock market since July 2012, with its stock price falling 21.8 percent from Thursday’s close to Friday’s closing.

According to The Wrap, The majority of the loss occurred in after-hours trade following Netflix’s fourth-quarter earnings, which were somewhat lower than expected. Netflix’s stock price plummeted more than $100 overnight, falling from $508 per share at the close of business on Thursday to $400 per share when trading opened on Friday, where it went below $400 to $397.50 at the end of the day, it has continued to decline in after-hours trade.

The lower-than-expected results did not just frighten investors. Netflix is anticipating 2.5 million new members in the first quarter of 2022, down from 4 million in the same period last year. This would be the company’s worst first quarter in a decade. Netflix also came the closest to conceding that rising rivalry from the likes of Disney and WarnerMedia may be affecting its growth.

Netflix emphasized in its letter to shareholders that the majority of its subscriber growth comes from outside the United States and Canada, which has reached saturation in recent years. Almost all of Netflix’s growth in 2021 came from outside the country.

“Our service continues to grow globally, with more than 90% of our paid net adds in 2021 coming from outside the UCAN region.”

Netflix Co-CEO Reed Hastings owns around 788,000 shares of Netflix cost. That valuation has dropped by $95 million since Monday. This year, he’s on course to make $34 million. Let’s see whether Netflix is able to recoup its losses. Keep an eye on Thirsty to get the latest updates.

What’s your opinion on this one? Let us know in the comments!