Netflix Subscriber Growth Chilled
Roku (ROKU), the king of connected TV, reports earnings on April 28. Will its fate follow that of Netflix?
The power of the earnings report! The Netflix (NFLX) sell-off dragged markets down and the global streaming entertainment company ended the week down nearly 68% from its 2021 highs.
What's the deal, Netflix? Analysts have come up with different explanations for $NFLX dropping 37% on the earnings report alone. The streaming service reported a loss of 200,000 subscribers in Q1 (the first report of loss in 10+ years).
What's to blame?
- As a surprise to no one, binging Netflix is a behavior that goes down when people are not under pandemic lockdown.
- Fierce competition. The company still holds the largest global market share of 222 million subscribers, but every company under the sun seems to be launching its own streaming service.
- Not enough Squid Game and Bridgerton level content to keep the masses coming back for more.
- Subscription price hikes and crackdowns on shared accounts may have shifted loyalties of long-time customers.
What's next: Die hard fans may see this as an opportunity. Wall Street Analysts predict a +39.26% over the next 12 months. (NFLX)
Roku (ROKU), the king of connected TV, reports earnings on April 28. Will its fate follow that of Netflix? Brace yourself against the earnings crush with defined outcomes: NFLX, ROKU