SAN DIEGO–(BUSINESS WIRE). Netflix operates an entertainment platform.
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What is it about in this case: According to a complaint filed against Netflix on Jan. 20, 2022, Netflix reported that it “slightly overestimated paid net adds in Q4,” adding 8.3 million subscribers compared to the forecast 8.5 million. The company also stated that despite “healthy” retention and engagement, it only expects to add 2.5 million net subscribers in the first quarter of 2022, down from the 4.0 million net adds in the prior-year period. As a result of this news, the company’s share price fell $110.75, or 21.7%, to close at $397.50 per share on January 21, 2022.
Then, on April 19, 2022, Netflix reported that it lost 200,000 subscribers in the first quarter of 2022, compared to previous projections of the company adding 2.5 million net subscribers. The company attributed the slowing revenue growth to four factors, including sharing accounts with an estimated 100 million additional homes and competition from other streaming services. As a result of this news, the company’s share price fell by $122.42, or over 35%, to close at $226.19 per share on April 20, 2022.
Next Steps: If you purchased Netflix (NFLX) stock, made call options, or sold put options between October 19, 2021 and April 19, 2022, you have legal options. Contact Robbins LLP for more information.
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