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Why Netflix Stock is Down

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If you are wondering why Netflix stock is down, you are not alone. Almost a million shares of the company changed hands on Wednesday, a level it had not hit since 2015. The good news for investors is that individual traders were buying up the dip, with buy orders outpacing sell orders. Nevertheless, despite Netflix’s burgeoning customer base, the company has been facing a string of setbacks in recent months.

The stock dropped 21% in pre-market trading following disappointing earnings from the company. Netflix lost 200,000 global subscribers in the first quarter, falling short of its guidance of 2.5 million net additions. The company attributed the decline to increased competition, higher subscription costs, and increased account sharing, as well as the Covid-19 pandemic. In addition, the company’s growth in Russia slowed to a mere half million, missing its prior year’s record pace of 3.8 million new subscribers. This pushed its shares down by 25% after-hours trading.

Last week, Netflix reported its fourth-quarter earnings. The company added 8.3 million new subscribers in the fourth quarter, bringing its total global subscriber base to 222 million. The company’s guidance for 2022 called for slow growth. The company projected adding 2.5 million new subscribers in the first quarter of 2022, and four million more in the first quarter of 2021. That would make 2022 one of Netflix’s slowest opening quarters in several years.

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As a result, Netflix’s shares have fallen more than 40% in 2022. The drop comes on the heels of the company’s decision to separate its DVD-by-mail service from its streaming service. While Netflix has continued to grow in size, its growth has slowed down due to the pressure from rivals. The company’s growth has been slow, and its stock has plunged more than 40% this year.

But there is good news for Netflix shareholders. The streaming service won the most awards at the 93rd Academy Awards, with seven, including best picture and best acting. Despite the lack of awards, Netflix still expects to win the best picture category this year with “The Power of the Dog.” The company has been in the news before, and that news lifted Netflix stock. The latest news about the awards has also boosted the company’s stock.

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