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Google PlayQ1 was not the friendliest to Netflix, as the company has just experienced the biggest single-day stock drop in its history, losing a reported $54 billion in market cap, according to Variety.
Netflix shares plummeted a staggering 35.1 percent on Wednesday, ending at a price of $226.19 per share. This marks the lowest Netflix shares have been since January 2018.
Between January to March, Netflix lost an estimated 200,000 subscribers, with the company attributing the loss to the pandemic, and widespread password sharing, both of which are said to have contributed to the loss.
In the company’s quarterly shareholders call, co-CEO Reed Hastings said that the company would be focused on achieving more of their objectives to get back in investors’ good graces moving forward.
“I know it’s disappointing for investors, and it is for sure,” Hastings said on Tuesday. “But internally, we’re really geared up, and this is like our moment to shine. This is when it all matters. And we’re super focused on achieving those objectives and getting back into our investors’ good graces.”
Netflix has said that it plans to cut down on password sharing. Hastings has previously said the company has to “learn to live with” password sharing, but has announced a test that aims to curb the practice.
“Our revenue growth has slowed considerably,” the company wrote in a letter to shareholders. “Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally. However, our relatively high household penetration, when including the large number of households sharing accounts, combined with competition, is creating revenue growth headwinds.”
