![]() ![]() ![]() That was because the Federal Reserve was set to start raising interest rates, a move that would weigh on high-growth companies. When companies reported fourth quarter results earlier this year, Netflix and Facebook experienced huge stock losses as investors signaled growing sensitivity to downbeat predictions for the future. The strong reaction could set the stage for another turbulent earnings season, with investors already on edge after disappointing results from the big banks. “They were assuming people were going to be locked down forever,” Hewson said, adding that unlike Apple and Amazon, Netflix doesn’t have many alternative sources of revenue.Ĭlearly, the market mood has changed. ![]() Shares of Netflix rose 86% from the end of 2019 through 2021, while the S&P 500 climbed 48%. “But as much as I’m a fan of that, I’m a bigger fan of consumer choice.”īig picture: Hewson said the stock plunge shows that Netflix was extremely overvalued, as investors - flush with cash during the pandemic recovery - fed a huge rally. “I’ve been against the complexity of advertising and a big fan of the simplicity of subscription,” Hastings said Tuesday. CEO Reed Hastings also told analysts that the company will consider a lower-price subscription option with advertising. It’s taking another look at how to address password sharing. Netflix signaled it could make big changes to its business as it tries to stem the bleeding. “Food and energy are people’s priorities right now, not watching ‘Stranger Things,’” CMC Markets chief market analyst Michael Hewson told me. More than a third did so to save money, according to a new report by media consultancy Kantar. People in Great Britain canceled about 1.5 million streaming subscriptions in the first three months of 2022. Inflation is forcing households to reevaluate their budgets. Netflix said its decision to pull out of Russia cost the company 700,000 subscribers. The streaming giant, whose stock had already dropped more than 40% year-to-date, blamed the attrition on increased competition for viewers and Russia’s invasion of Ukraine. ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |