Netflix stock plunges as subscriber growth worries deepen
ABC News
Netflix delivered its latest quarter of disappointing subscriber growth during the final three months of last year, a trend that management foresees continuing into the new year as tougher competition is undercutting the video streaming leader
SAN RAMON, Calif. -- Netflix delivered its latest quarter of disappointing subscriber growth during the final three months of last year, a trend that management foresees continuing into the new year as tougher competition is undercutting the video streaming leader.
The Los Gatos, California, company added 8.3 million worldwide subscribers during the October-December period, about 200,000 fewer than management had forecast. Besides releasing its fourth-quarter results Thursday, Netflix also projected an increase of 2.5 million subscribers during the first three months of this year, well below analysts' expectations for a gain of 4 million, according to FactSet Research.
The disappointing news caused Netflix's stock price to plunge by about 20% in extended trading after the numbers came out, deepening a steep decline during the past two months.
It capped a challenging year for Netflix after it reveled in eye-popping gains during the pandemic lockdowns of 2020 that drove homebound people to its service.
