Netflix stock fell 25.87% last month. Netflix recently estimated that the company will add almost 2.5 million subscribers in the 1st quarter of 2022 (Q1 2022), but this number is almost 40% down from the same quarter last year (Q1 2021) when it was 4 million.
Netflix’s customer acquisition growth still hasn’t reached pre-Covid levels. Further, the operating margin of the company was 14.4% in Q4 FY20, and 8.2% in Q4FY21.
The company was expecting almost 8.5 million subscribers in Q4 FY21 but the company was able to add only 8.3 million subscribers.
Due to all these reasons, there was a decline in Netflix’s stock and after this fall, Netflix’s Co-CEO Reed Hastings bought shares of about $ 20 million in the company.
This article is only for education purpose and the author has his own views and research, so if you invest in these stocks then do it at your own risk and do the research yourself before investing.