Netflix Stock Crashes 25%: Is the Fall Justified?
Netflix (NASDAQ: NFLX) shares crashed 25% after reporting fourth-quarter 2021 earnings on Jan. 20. While the stock has recovered a bit since then, the sudden drop appears to be due to new guidance from management. Netflix told investors to expect lower-than-average subscriber growth in Q1.
Was the fall in the price justified or was it an overreaction to the bad news? What follows is a closer look at the subscriber guidance and a calculation of the magnitude of the impact.
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Source Fool.com
