Netflix’s fall from grace has ushered in the pivotal second act

Spartan Ives Wealth
Netflix closes down 35% wiping more than $50 billion off market cap


  • Shares of Netflix plunged Wednesday after the streamer reported it lost subscribers in its most recent quarter.
  • The company shed more than $50 billion in market cap as a result.
  • At least nine Wall Street firms downgraded the stock on the disappointing report. 

Shares of Netflix closed down more than 35% Wednesday after the streamer reported earnings Tuesday evening that showed it lost subscribers for the first time in more than 10 years. The results and weak outlook led to a wave of downgrades from Wall Street on fears over the company’s long-term growth potential.

The drop caused Netflix to shave more than $50 billion off its market cap. It is now the worst-performing stock of 2022 in the S&P 500, down 62.5% year-to-date.

Netflix said several headwinds are affecting growth, including increasing competition and the lifting of pandemic restrictions. The video streamer’s business benefited from coronavirus stay-at-home orders, with more people seeking out digital entertainment. But in recent months people have been spending less time on digital platforms as vaccines rolled out and mandates eased.

error: Content is protected !!