Netflix shares fall 20% after revealing its 2021 results

Netflix today revealed its earnings report for the last quarter of 2021, completing the financial results for the year, and said report showed a sharp drop in user growth, which translated into a sharp drop in its share price.

Adding the data from the four quarterly reports of 2021, it is observed that Netflix increased its number of subscribers by 18 million. While this is a figure, it is less than half of the 37 million it added in 2020, marking a sharp drop in the upward trend. The company also reports that it expects to add 2.5 million subscribers in the first quarter of 2022, when last year they increased by 4 million during the same period.

Despite earnings in the fourth quarter of 2021 reaching $7.7 billion, 16% more than the same period in 2020, investors are not happy, and that is why the value of its shares fell from $508.27 at yesterday’s close, at $399.32 at press time, down 21.43%. These figures are really not encouraging at all for the company, which will have to do more to continue to maintain its growth and attract more subscribers to the service.

It will be interesting to see what measures Netflix takes to attract new subscribers, while keeping the current ones. Rumors have been heard for some time about the introduction of new plans or changes to the current ones, although nothing has been made official yet.

What do you think about this big drop in Netflix stock? Are you surprised by the drop in its annual growth?

Source: Techspot