Netflix Misses New Subscriber Target, Stocks Plummet

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Netflix: The streaming platform Netflix released this Thursday (20) the company’s financial report with the numbers for the last quarter of 2021. The results presented generated a sharp drop in the company’s shares at the close of the market.

The main data of the report was the addition of 8.28 million new paid subscribers in the period – a number below the target set by the company itself, of 8.5 million subscribers, which corresponded to what was obtained in the same period of 2020.

In addition, the company also reduced the expectation of subscriptions added in the first quarter of 2022 to about 2.5 million registered subscribers. The number is far from the value recorded at that time in 2021 (3.98 million) and market analysts’ guesses (6.93 million).

As a result of lower expectations and the failure to meet the new subscriber target, Netflix’s stock dropped by as much as 20%. In financial terms, profit was $607 million, up from $542 million at the end of 2020, while revenue was also up 16%.

What happened?

In a statement made before the release of the results, the company’s CEO, Reed Hastings, commented on the challenges faced by the platform and gave some reasons for the underperformance. One is increased competition, with more and more streaming services available.

In addition, the continuity of the pandemic means that the company has not yet returned to the levels of acceleration seen before covid-19 – a fact that even affects the pace of recordings and the world economy.