Netflix’s Subscriber Shortfall Shaves $15 Billion Off Its Value
Netflix’s 2 Million Subscriber Shortfall Costs It $15 Billion
(Bloomberg) -- Disappointing subscriber numbers for the second quarter shaved $15 billion from Netflix Inc.’s market value as trading opened Thursday.
Shares of the streaming-video service fell as much as 11%, their biggest drop since July 2018. Netflix signed up 2.8 million international customers in the quarter, almost two million fewer than expected. The company also lost 130,000 domestic subscribers as a result of higher prices and a weak slate of TV shows.
For comparison, $15 billion is more than the value of about a third of the companies in the S&P 500, including American Airlines Group Inc. and Viacom Inc.
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--With assistance from Derek Hall.
To contact the reporter on this story: Catherine Larkin in Chicago at clarkin4@bloomberg.net
To contact the editor responsible for this story: Courtney Dentch at cdentch1@bloomberg.net
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