by Anne Ashworth at The Daily Mail via WhatsNew2Day
Netflix, the streaming service that gave us Bridgerton and Sex Education, was at the center of the week’s biggest stock market drama.
Shares’ plunge of 37 percent this week signals that pressure on household budgets will play a major role in the fortunes of many companies on both sides of the Atlantic.
Now is the time for investors to scrutinize their portfolios to mitigate the damage of consumer caution amid concerns that other companies could go from overnight growth darling to growth purgatory. can go, as the American analyst Michael Nathanson of Moffett Nathanson puts it.
About 200,000 subscribers canceled Netflix in the first quarter, suggesting people are watching its spending. The company expects 2 million additional subscribers to leave worldwide this year.
In lockdown, Netflix was considered a must-have. It was a stay at home. The stock price, now $227, was still as high as $700 in November 2021.
But many former fans have lost love for the streaming service. They are tired of sitting on their couch and may prefer to spend a little extra money on dining out or vacations.
Shares in rivals such as Disney+ and Roku owner Walt Disney also fell this week, underscoring the new search for stocks with pricing power. Companies that can cut their own costs and charge customers more should be more resilient to inflation.
It seems Netflix can do neither,…
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