Why Is Netflix Stock Dropping 2022
Netflix (NFLX) share prices are on rise before the company declared first-quarter losing of subscribers in more than a decade.
Netflix (NFLX) shares are trading at around $226 with market capitalization of $ 100.12B.
Netflix (NFLX)’s Price Drops more than 32% after the company reported its first quarterly loss of subscribers in Over a Decade.
On Wednesday, Netflix stock fell 28% in pre-market trading and in open market, the company's value fell by more than $ 40 billion.
Inflation is forcing people to manage their budgets like people in Great Britain canceled streaming subscriptions around 1.5 million and 600,000 subscribers in the U.S. and Canada in the first three months of 2022.
Although Netflix does not have any other sources of revenue model, unlike Apple and Amazon.
The company has reported that password sharing may be one of the main factors that have led to a slowdown in enrolment, which is down from 221.64 million from 221.8 million in Q4 in 2021.
In the year 2019 the stock market share was overvalued which has dropped by 42% since the beginning of 2022.