Netflix is down nearly half a million subscribers in North America this quarter, leading to a stock drop of nearly 5% on Wednesday — the company’s biggest slide since its last poor earnings report in April.
This marks the first time the platform has lost domestic customers in two years.
The Financial Times, which ran the headline, “Netflix bleeds subscribers,” says the streaming platform’s failure to meet analyst projections has investors jumpy.
“The California-based company predicted it would add 3.5 [million] subscribers in the third quarter, disappointing investors who were looking for a stronger rebound in the second half of the year,” the outlet reported, adding, “Analysts had forecast that Netflix would add 5.9 [million] subscribers during the third quarter.”
In a shareholder letter, Netflix executives blamed their failure to meet projections this quarter on “unusual choppiness in our growth” and cited the pandemic, something CFO Spencer Neumann echoed on an earnings call. But CEO Reed Hastings had to assuage similar worries after disappointing