Netflix Closed Down 35%, Becoming The Worst Performing Stock In 2022

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Netflix - Alexander Shatov via Unsplash
Netflix - Alexander Shatov via Unsplash

Shares of Netflix (NASDAQ: NFLX) closed down more than 35% Wednesday after the streaming company reported earnings Tuesday evening that showed it lost 200,000 subscribers for the first time in more than 10 years. 

The drop caused Netflix to wipe off over $50 billion of its market value and NFLX is currently the worst-performing stock of 2022 in the S&P 500, down 62.5% year-to-date.

Netflix (NASDAQ: NFLX) estimated that over 100 million households are sharing their Netflix account passwords with their family or friends.

In an effort to boost growth, the streaming company said it may add a lower-tiered ad-supported subscription, and hinted that a crackdown on password ramping will be led soon.

“Although their plans to reaccelerate growth (limiting password sharing and an ad model) have merit, by their own admission they won’t have a noticeable impact until ’24, a long time to wait on what is now a ‘show me story,’” Bank of America analysts said in a Wednesday note. The firm was one of at least nine companies to downgrade Netflix on the disappointing report.