Netflix, one of the most popular video streaming services around the globe, falls short with its earnings by 10% for the quarter.
As the most popular and widely subscribed streaming service globally, the drop in Netflix stocks can be attributed to the sloth growth in the number of its subscribers. Its subscriber growth for the past month has been proven to slow down more than it has projected, compared to the beginning of the pandemic. Statistics show that it might be due to the gradual relaxation of quarantine restrictions as people can now explore the outside of their homes, albeit with certain limitations.
Netflix’s Subscriber Performance
Netflix was only able to gather around four million subscribers worldwide from the month of January up to March. It is notably the smallest earnings throughout the three-month period in its stellar performance for the last four years.
This big dent in its stock performance reported that the overall number of new subscribers was about two million fewer than its usual amount of subscribers. This goes below what the management and the analysts have predicted for the streaming service during the first quarter of 2021.
Netflix Stock: The Plummet
The performance for the first quarter marked a massive drop from the performance around the same quarter of the past year when Netflix itself was able to attract about sixteen million subscribers. This is due to the first wave of community quarantine that was imposed by governments all over the world after the COVID-19 started to spread. This, in return, generated an immense amount of audiences that were locked inside their homes and were looking for entertainment.
Due to the massive demand and the fact that the virus is nowhere near the end of its era, Netflix was confident in its forecast of the possible increase of subscribers of about a million in the coming period of April through June.
However, the poor performance at just the beginning of the year shook its investors, which caused the Netflix stock to plummet about 10% in the extended trading in Los Gatos, California.
This inevitability in terms of the stagnation of the growth of the number of subscribers has been duly noted by the company’s management in various reminders that its earnings were due to the pandemic.
Netflix Stock: The Future
This poor performance leads to the query on how big of a drop this year will face from last year’s increase of about 37 million subscribers, which is the largest number of expansion Netflix has ever gotten since it started about 14 years ago.
While this is all bad news, the management of Netflix has reassured its investors that the projected growth in subscribers can improve in the second half of 2021 as more of its series and movies that were inevitably delayed due to the pandemic are now finished to be released.
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The drop in Netflix earnings and stocks can be attributed to the loss of subscribers compared to its projected numbers. Subscribers, on the other hand, can fully enjoy streaming series and movies through their 2021 Newest HP Stream 14-inch or Acer Aspire C24-963-UA91 AIO Desktop.