For more than a year, Netflix has told anyone who would listen that there was nothing to worry about. Its subscriber growth was slowing, but the problem was temporary. It was just working through Covid weirdness.
Yesterday, the company reversed itself and admitted its business is losing momentum. Netflix lost 200,000 customers in the first three months of the year. The company predicts it will lose another 2 million this quarter. Its stock dropped more than 35% today. Netflix, worth $308 billion in November, is now worth less than $100 billion.