Netflix stock crashes, erasing $40 billion in market cap as investor panic grows over slowing subscriber growth
Netflix's market cap drops
The market value of the company decreased by about $40 billion as on Friday, bringing its market cap to about $375 billion, as concerns over decelerating growth keep investors in a state of fear, The Warp reported.
The stock dropped after a report from MoffettNathanson analyst Robert Fishman had sounded an alarm over Netflix's long-term subscriber growth, as per the report.
Netflix shifts focus
Fishman, in his research note, wrote that “It is likely Netflix has a few more quarters of strong subscriber growth driven by its content slate and ad-tier, but we do expect the benefits of the password-sharing crackdown to slow,” as quoted by The Wrap.
The analyst's fears have injected renewed worry on Wall Street, particularly as Netflix transitions from focusing on subscriber numbers to profitability, according to The Wrap. Netflix had recently announced that it will no longer report subscriber counts on a quarterly basis, The Wrap reported.
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