No More Stock Binging for Wall Street as Netflix $#!+$ the Bed
Quarterly results rattle investors while the rest of Hollywood cringes for who is next
The rallying cry “I cut the cord” that defined a generation of binge watchers and movie addicts is over.
Netflix is hemorrhaging subscribers at a pace that blindsided Hollywood and sent Wall Street diving for cover on Wednesday. The streamer’s first-quarter earnings report revealed the decade-long run of meteoric growth in subscribers gave way to a net decline of 200,000 customers when Netflix forecast it would add 2.5 million signups.
The disappointing subscriber signups weren’t just contained to one region — but worldwide. And that marks an inflection point for a company that once thought it would rule the U.S. market, and then dominate key regions around the globe before competitors emerged.
Now, the investor class that owns Netflix — and the money managers who safeguard their financial decisions — are wondering what went wrong. A theme emerging as trading floors opened for business was why didn’t Netflix see this coming and warn Wall Street sooner.
Who is next? Disney+? Hulu? Paramount+? Anything with a plus after it? Subscribe, please
“This is a body blow to the bull case,” said Santosh Rao, head of research for Manhattan Venture Partners. “Is it churn? Is it competition? Is it just the pricing part of it? Or what exactly is going on and what are they saying?”