Netflix (NFLX US) $US226.19

The world’s largest streaming provider fell 35% overnight and is now down ~70% from its 2021 peak following a decline in subscriber numbers in the first quarter of the year. Netflix has been growing at a rate of around 25mn new subscribers per year delivering it a paid user base of an astonishing 221.6mn, however, Q1 saw a loss of 200,000, the first loss in a decade, plus they flagged more declines to come. While quarterly revenue grew 9.8% to $7.87bn and profit was above expectations, we’re witnessing the aftermath of a growth company that stops growing, and the transition can be painful. They also spoke to a change of strategy which surprised the market, in the past Netflix has been okay with password sharing and has been against lower-priced plans that allow advertising – both of these are now on the table. They think around ~100m people are watching Netflix for free globally!