Netflix loses more than $50 billion after announcing subscription cuts

Netflix recently stated that it had lost a massive number of subscribers, owing in part to the current war in Ukraine.

In the first quarter of 2022, the company recorded its first subscriber loss in more than a decade, losing 200,00 subscribers, followed by a 35% decline in stock price.

Netflix blamed a portion of its declining subscriber numbers on people sharing their passwords with non-paying viewers in a letter to shareholders but managed to paint a more optimistic view of the situation.

Netflix has certainly reached its lowest point after a decade of phenomenal expansion.

Netflix’s stock had already dropped more than 40%, and now the streaming platform’s shares have dropped another 35%, resulting in a $50 billion market capitalization loss, the most for the firm to date.

William Ackman, a well-known billionaire investor, liquidated a 1.1 billion investment in Netflix as a result of the unexpected drop in stock value.

Pershing Square Capital Management, Ackman’s hedge fund, had bought the stock just three months before.

Netflix’s stock was trading at $226.19 per share on Wednesday, April 20.

The streamer’s market cap dropped by $49 billion earlier this year after poor Q4 subscriber additions signaled a halt of its prior growth.