Roku, Disney and other streaming stocks slip after Netflix report
Reed Hastings, co-CEO of Netflix, speaks during the 2021 Milken Institute Global Conference in Beverly Hills, California, United States, October 18, 2021.
David Swanson | Reuters
Share prices of streaming video companies fell on Tuesday after Netflix released results that showed the company had lost subscribers for the first time in more than a decade.
Shares of Disney fell 5%, while Roku fell 6% after hours after rising nearly 8% during regular trading. Warner Bros. Discovery, the owner of HBO Max, fell nearly 4%, and Paramount (formerly ViacomCBS) fell more than nearly 6%.
The news highlighted investor fears over a general slowdown in consumer spending.
Netflix fell more than 25% in after-hours trading on Tuesday after reporting a loss of 200,000 subscribers in its last quarter and projecting a loss of 2 million subscribers in the second quarter.
Netflix also warned on Tuesday that it could start cracking down on password sharing, which could increase its number of paid subscribers. It had allowed its 222 million users to share their accounts with friends and family to get them hooked, but now it wants every household that streams Netflix to pay. He estimated that up to 100 million people were streaming Netflix with someone else’s password.
Netflix and other streaming companies have been given a huge boost by the pandemic as consumers have spent more time and money streaming content from home.
But as the economy reopens in the US and people spend more time away from home, it’s almost as if the pandemic never happened for Netflix, hitting its lowest price since November 2019. tuesday. The stock is now down more than 40% for the year, and more than 60% from its peak in November 2021.