The Travail of Netflix
The crypto market was all good on Tuesday against what went on with Netflix (NFLX). As the number one streaming service in the world, its shares price dropped by 27% to $256 by the close of trading activities on Tuesday. That took the share value to the low levels seen in 2019, after which the company announced the huge loss of over 200,000 subscribers from its streaming service in Q1 of this year. It amounts to approximately a loss of $40 billion in thirty minutes.
According to the company’s records, this is the first time it has been losing customers at such a scale since 2011, and it is further expected that there will be a loss of 2 million other subscribers in Q2. NFLX is currently suffering a 63% loss from its highest point of all time and more than 40% just in 2022.
Analysts have waded in to share their thoughts on the situation from different perspectives. According to Brian Chappatta, if anyone is thinking about how long the effect of such misfortune can last, he pointed in the direction of Facebook and said that the company is still down by about 33% ever since it announced its user growth.
For MoffettNathanson’s Michael Nathanson, it’s all a shocking reality. He stated that everything he had been convinced about in the course of the last five years had been surrendered in just a quarter.
Will there be a Similar Occurrence in Crypto?
Also in the news is Disney’s dip by up to 5.2% in prolonged trading following Netflix’s announcement of its predicament, whereas Warner Bros. dropped by up to 2.8%. Also, shares belonging to Roku Inc., which makes set-top boxes equally, experienced its own drop at 8.3%.
Traders and observers are currently wondering if this trend is capable of dragging down the crypto-assets market along with it. Comments from an economist rang a reminder that when such was last seen, the sharp drop in Netflix’s market value had a ripple effect across the crypto market that caused up to a 30% crash in four days. He stated, however, that he does not see this degenerating to such an extent while he described it as an idiosyncratic occurrence.
Why so many people do not think this will lead to a crash in the crypto market is simply because the first time was in close connection with macroeconomics – a general sell-off in the stock market as a result of fears regarding interest rate increment in the United States. But now, indicators are specific just to reduced demand for the company’s stock in the market.