Streaming company points to account sharing, revenue decline, rising competition as major issues
Netflix stock price plummeted almost 40% on Wednesday after the company announced its first loss of subscribers in over 10 years.
The stock price of Netflix fell to as low as $212.51 per share on the Nasdaq after the opening bell, down 39% from its previous close of $348.61 a share.
The sudden decline came a day after Netflix lost 200,000 subscribers during the first three months of 2022, marking the first loss of users since October 2011.
The US-based global streaming service and production company cited account sharing, revenue decline, and rising competition as major issues.
“Our revenue growth has slowed considerably large number of households sharing accounts, combined with competition, create revenue growth headwinds,” the company told shareholders after the release of its first-quarter financial results on Tuesday.
More than 100 million households use a shared password around the world for the company’s service, with over 30 million of those in the US and Canada, according to Netflix.