After publishing a much gloomier quarterly report than predicted a few days ago, Netflix's share plunged by 21%, or the equivalent of $49.1 billion in value. Marketwatch reports on how the streaming service has failed to attract enough new subscribers in a market with increasingly fierce competition. A total of 8.3 million new subscribers joined during the fourth quarter, which is below the expected 8.5.
Netflix chief financial officer Spencer Neumann commented on the news, believing it was mainly due to what he expressed as a residual effect of the "COVID overhang", with a brief mention of "marginal impact from competition".
With this in mind, Netflix has announced revised future forecasts and has lowered its targets, a move that also contributed to the stock decrease.
Could it be that the market is starting to saturate with the amount of different streaming services? What do you think?