Netflix stock is absolutely getting crushed in after-hours trading today after a very disappointing earnings release.
People are #CancellingNetflix and not coming back.
Gee, I wonder why that could be?
Maybe it has to do with this?
#CancelNetflix Trends Online Amidst “Cuties” Outrage, Cancellation Spikes
Sick: Netflix To Release French Movie About Twerking 11 Year Olds
Yeah, we didn’t forget.
That was sick.
Get woke, go broke…
But more than that, target and groom our kids and you become Public Enemy #1.
Am I right?
Here are some of the posts announcing the NFLX tankage:
Netflix getting crushed after hours on a big earnings miss $nflx pic.twitter.com/29L3wjpah2
— BeanInvest (@bean_invest) April 19, 2022
I like this quote: “getting crushed”:
Netflix getting crushed after earnings: $NFLX Down $63 18.25% pic.twitter.com/YappFMfgMP
— Markets, Options & more (@Markets_Options) April 19, 2022
Not only did it get crushed, it got mocked along the way:
$NFLX 🤣 pic.twitter.com/CHyzDCztTs
— EliteOptionsTrader (@EliteOptions2) April 19, 2022
Netflix getting crushed maybe a sign of looming consumer weakness, but ad-powered models should be somewhat better off than subscription-first players.
Also, probably be the first real recession digital consumer subscription businesses ever face. Not everyone comes out same.
— Tejas RD (@tejas_rd) April 20, 2022
Elon claims it’s the “woke virus” that did them in:
The woke mind virus is making Netflix unwatchable
— Elon Musk (@elonmusk) April 20, 2022
Hey, the last time Elon started ragging on a FAANG company, it turned out he was about to buy the whole damn thing a few weeks later.
Elon eyeballing NFLX?
Here’s what the company said from their Earnings Release:
“Our revenue growth has slowed considerably as our results and forecast below show.
[…]In the near term though, we’re not growing revenue as fast as we’d like. COVID clouded the picture by significantly increasing our growth in 2020, leading us to believe that most of our slowing growth in 2021 was due to the COVID pull forward. Now, we believe there are four main inter-related factors at work.
[…]macro factors, including sluggish economic growth, increasing inflation, geopolitical events…and some continued disruption from COVID are likely having an impact as well.
And from CNBC:
The company also said it expects to lose 2 million subscribers in the second quarter. A loss of 200,000 compared with 2.73 million adds expected, according to StreetAccount estimates. Netflix previously told shareholders it expected to add 2.5 million net subscribers during the first quarter. Analysts had predicted that number will be closer to 2.7 million. The company said that the suspension of its service in Russia and the winding-down of all Russian paid memberships resulted in a loss of 700,000 subscribers. Excluding this impact, Netflix would have seen 500,000 net additions during the most recent quarter.
The company appears to have learned little, claiming they are doubling down on prior efforts…
From the Earnings Release:
Our plan is to reaccelerate our viewing and revenue growth by continuing to improve all aspects of
Netflix – in particular the quality of our programming and recommendations, which is what our members value most. On the content side, we’re doubling down on story development and creative excellence, which we see reflected in big Q1’22 TV hits like Bridgerton.
When things start going bad, it doesn’t take long before losses and wounds start to compound.
Does NFLX have a bright future or are they about to go the way of Blockbuster?