Netflix Shares Rebound Following $26 Billion Market Valuation Loss

Netflix shares are on the rise again following a seven-day freefall that saw the SVOD pioneer’s stock plummet nearly 20% (or $26 billion) in value after posting disappointing Q2 subscriber growth numbers.

Shares closed July 24 up 3.5% to $317.94 per share — still a ways off the $362.78 valuation on July 17 when Netflix reported fiscal results.

Indeed, the service posted a loss 126,000 domestic subscribers after projecting growth of 300,000 subs. It was Netflix’s first domestic sub loss since 2011 when co-founder/CEO Reed Hastings announced – in an ill-advised tweet from home – the separation of the company’s legacy by-mail DVD rental business from its subscription streaming business.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

Despite quickly cancelling the move following subscriber blowback, Netflix shares nosedived 75% in value.

The latest stock decline reportedly cost co-founder/CEO Reed Hastings, who owns 2.5% of Netflix’s stock, $850 million.

Before the drop, Netflix shares were up 35% year-to-date. The service expects to add 7 million subs in the current third quarter, which ends Sept. 30.

Separately, Netflix launched a mobile-only subscription plan in India for 199 Indian rupees ($2.89) monthly – less than half the service’s basic $7.23 plan. The SVOD service’s standard plan in India costs $9.41 and $11.58 for premium access.

The move comes after Netflix added just 2.7 million subs globally in Q2 – slightly more than half of the 4.8 million subs projected.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

4 + thirteen =

This site uses Akismet to reduce spam. Learn how your comment data is processed.