The collapse of Netflix

Not every show ends well in Hollywood

Netflix is giving a clear message to its investors: "Our revenue growth has slowed considerably" due to the loss of subscribers.

We are officially entering one of the most important weeks of the market in this second quarter of the year. A week full of important data where companies such as Netflix, Johnson & Johnson, IBM, Tesla, will be in the eye of investors.

In this sense, Netflix started its first quarter of 2022 on the wrong foot, the market punished the stock after the company reported disappointing data such as the loss of 200,000 subscribers. For the company, this means the first loss of subscribers in a decade, the estimates for the second quarter of the year are not encouraging, it is estimated a drop of approximately 2 million subscribers.

In addition to this Netflix says it expects to report sales of USD8.05 billion for this second quarter, slightly below the USD8.22 billion previously projected.

Rivals affected

The stock has suffered a drop in off-market hours of approximately 25% since reporting its results and to see the influence the company has in the entertainment industry we can mention that its rivals have also been affected by its results as Walt Disney, which has bet heavily on Disney+, Hulu and ESPN+ as a key part of its future, is down 4% after the close.