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Why Netflix Stock Took a Dive Today

TheMotleyFool

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Shares of Netflix (NASDAQ: NFLX) were moving backwards today on reports that the company's ad business is stumbling out of the blocks. In fact, advertisers are asking the company to return some of the money that they had paid it.

The news sparked a sell-off in the streaming stock because investors had seen the ad business as a key growth driver in 2023. As of 12:01 p.m. ET, the shares were down 8%.

According to a report in Digiday, Netflix is missing the ad targets it had promised to advertisers because not enough members seem to have signed up for the new ad tier, which is priced at $6.99 per month in the U.S.

Source Fool.com

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