Netflix falls after disappointing forecast for new users

(Bloomberg) –Netflix inc. It projects that it will only add 2.5 million subscribers this quarter, a figure lower than Wall Street estimates, and that it would mark the slowest start to a new year for the company in at least a decade.

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Netflix shares fell, wiping out about $45 billion in market value. Investors are fueling the view that the streaming giant is entering a new phase of slower growth. Walt Disney Co. and Roku Inc. also fell.

Netflix added just 18.2 million customers in 2021, down 50% from the previous record year. He forecast that the slowdown will continue, at least for another quarter, and the outlook for the current period falls short of Wall Street’s projection of 6.26 million new subscribers.

The company blamed a difficult economy, especially in Latin America, as well as the lingering fallout from the pandemic. Netflix reiterated its confidence in the long-term outlook for the business, but said growth “has yet to accelerate back to pre-Covid levels.”

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The ups and downs of the pandemic have made the company’s trajectory less predictable. Netflix posted its best growth in subscribers in 2020, when billions of people were stuck at home. But the company has said that detracted from future growth and led to a slow start in 2021. The company closed the year with two strong quarters. Netflix signed up 8.28 million new customers in the fourth quarter of 2021, according to a statement on Thursday, beating Wall Street estimates, though below its own forecast of 8.5 million.

In the quarter just ended, Netflix released more major titles than in any previous period. They included new seasons of the popular series “You”, and new ones like “Things to Clean” and “My Name”, and the movies “Red Alert” and “Don’t Look Up”.

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Netflix Plunges After Disappointing With Forecast for New Users

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