Why Netflix Shares Fell Another 49% In April
Shares of Netflix (NASDAQ: NFLX) fell 49.2% in April 2022, according to data from S&P Global Market Intelligence. The stock is now down 72% in 6 months, brutally punished by the market's hasty retreat from growth stocks and other risky investments. Even the growth investors who might normally pick up Netflix shares on the cheap under these circumstances have stayed away, because the video-streaming veteran is losing customers for the first time in a decade.
Netflix was on the outs long before April rolled in. The stock took a massive haircut in January after its subscriber growth guidance for the first quarter came in below Wall Street's expectations.
The first-quarter report hit the news wires on April 19, and it wasn't pretty. The soft prediction for subscriber additions turned into a negative number for the first time since the Qwikster era in 2011. Even worse, management sees the negative trends continuing in the second quarter, so the next quarter's subscriber drop looks even larger.
Source Fool.com
