Netflix’s stocks drops by 7% as company plans to withhold subscriber additions

Investors are concerned that the streaming behemoth may reach growth plateaus in some areas as a result of this decision, a Reuters report states.

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Post the unexpected update that Netflix would stop revealing new member additions and average income per member from 2025, it’s share price dropped as much as 6.8% on Friday on the NASDAQ. Investors are concerned that the streaming behemoth may reach growth plateaus in some areas as a result of this decision, a Reuters report states.

According to the Bloomsberg analysis, the corporation estimated that more than 100 million people were using their accounts without making any payments. Netflix has successfully convinced millions of freeloaders to subscribe and pay for access, despite executive fears about possible customer displeasure.

Netflix added more members in the first quarter, but as of late Thursday, it revealed that its second-quarter revenue estimate was less than the $9.54 billion market had predicted.

The streaming giant also said that 9.3 million additional users were attracted to the service by its ad-supported streaming choices. By the end of March, 269.6 million subscribers worldwide will have signed up thanks to this spike.

With its recent spike in value, Netflix’s stock is currently trading around the top of its 52-week range. Wall Street analysts issued a warning, stating that the stock price may be at risk due to the high expectations that were held before the results report.

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