Netflix stung by slowing subscriber growth
The California company added 8.3 million worldwide subscribers during the October-December period, about 200,000 fewer than management had forecast. Besides releasing its fourth-quarter results, Netflix also projected an increase of 2.5 million subscribers during the first three months of this year, well below analysts’ expectations for a gain of 4 million.
The disappointing news caused Netflix’s stock price to plunge by about 20 percent in extended trading.
Netflix picked up 18.2 million worldwide subscribers during 2021, its slowest pace of annual growth in five years. It came after Netflix gained more than 36 million subscribers during 2020. The service now boasts nearly 222 million worldwide subscribers worldwide, more than other video streaming leader.
Netflix earned $607 million in the fourth quarter, a 12 percent increase from the same time in the prior year. Fourth-quarter revenue rose by 16 percent to $7.7 billion. Investors, though, are getting more worried that Netflix may be nearing its peak in popularity.