Netflix is Plummeting on Wall Street Due to Disappointing Subscriber Growth

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Video streaming service Netflix fell sharply on the stock exchanges in New York on Wednesday due to severely disappointing growth in the number of new subscribers in the first quarter.

 

The Netflix share plummeted 6.5 percent. The leading indicators on Wall Street showed a mixed picture at the outset, after the day’s losses before.

In total, Netflix gained about 4 million paying customers from January to March. Analysts had expected an increase of more than 6 million. In the last three months of last year, there were still 8.5 million new subscribers.

During that period, many people still turned to drama series such as The Crown and The Queen’s Gambit. But due to the relaxation of the corona measures in various countries and the lower production of new films and series, fewer people were looking for entertainment on Netflix. Netflix is counting on just 1 million new subscribers for the current quarter.

The technology gauge Nasdaq went down 0.4 percent to 13,731 points, under pressure from the Netflix share price. Shortly after the opening bell, the leading Dow Jones index was up 0.1 percent at 33,858 points, and the broad-based S&P 500 dropped 0.1 percent to 4,130 points.

Telecom group Verizon Communications also opened its last quarter books, declining 0.2 percent. The results were better than expected, but the number of mobile customers decreased for the first time in a year. Health insurer Anthem increased its profit target for this year and gained 0.8 percent. Oil service provider Halliburton went down 2.9 percent after results.

New York-listed English football club Manchester United remained flat. Together with five other English top clubs, United is withdrawing from the establishment of a European Super League. Other European top clubs are also abandoning the plan.

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