Netflix Shares Drop 21% to $73.68 as Investors Question Growth After Warner Deal Pass
Updated
Updated · Los Angeles Times · Jul 16
Netflix Shares Drop 21% to $73.68 as Investors Question Growth After Warner Deal Pass
3 articles · Updated · Los Angeles Times · Jul 16
Summary
Netflix closed Tuesday at $73.68, down 21% this year and 42% from a year ago, as investors pressed for a new growth path after the company walked away from a Warner Bros. Discovery acquisition in February.
7.8% of U.S. TV viewing in April went to Netflix, Nielsen said, while YouTube climbed to 13.4%, feeding concerns that weaker engagement could hurt subscriber retention, ad growth and Netflix’s ability to raise prices.
FactSet analysts still expect a solid second quarter, with revenue up 14% to $12.58 billion and net income rising 8% to about $3.38 billion ahead of Thursday’s earnings report.
Netflix is leaning on ads, live programming, games, video podcasts and short-form content partnerships, while internal discussions have also included live channels and bundling with other streaming services.
The pressure echoes 2022, when subscriber declines pushed Netflix into ads and password-sharing crackdowns, and some analysts now argue it may need another acquisition or more sports rights to sustain growth.