By Kuldip K. Ambastha
On Wednesday, April 20, 2022, the stock price of Netflix, Inc. (NFLX), a subscription streaming service and production company, dropped by -35.1% per share. (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of July 15-19, 2019; By Anil K. Ambastha and Kuldip K. Ambastha.”) The stock had benefited from stay-at-home COVID-19 public health pandemic best practices, but is now struggling. In the latest quarter, Netflix reported a surprise net subscriber loss and also, in the next quarter, said it is expecting further loss in the near future.
Netflix will be cracking down on account password sharing, and also will be making other changes which may or may not benefit its stock price over the long-term. Wall Street equity research analysts have downgraded the stock and / or instituted cuts in the stock’s price target. Many investors seem to have lost confidence in Netflix. The sharp drop in the stock price of Netflix may hint at future turmoil in technology sector companies going forward.
Keywords – Netflix, Inc., Netflix, NFLX, technology, tech, subscription, streaming, production, drop, loss, downgrade, cut, price, target.
Disclosure – The principals of Ambastha Financial LLC have a short position in NFLX. The clients of Ambastha Financial LLC have no positions in NFLX.
Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.
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