Netflix has lost more than $54 billion in market value as its stock price plummeted over 35% on Wednesday, a day after the company announced its first loss of subscribers in over a decade.
The stock price of Netflix, a US-based global streaming service and production company, closed Wednesday at $226.19 per share on the Nasdaq – down 35.12% from its previous close of $348.61 a share.
While the company had a market capitalization of $154.77 billion on Tuesday, this plummeted to $100.42 billion on Wednesday – a $54.35 billion loss in market cap.
The sudden decline came after Netflix reported late Tuesday that it had lost 200,000 subscribers during the first three months of 2022, marking its first loss in users since October 2011.
The company cited account sharing, revenue decline, and rising competition as major issues.
More than 100 million households use a shared password around the world for the company’s service, with over 30 million of those in the US and Canada, according to Netflix.
“Our revenue growth has slowed considerably … a large number of households sharing accounts, combined with competition, create revenue growth headwinds,” the company told shareholders after the release of its first-quarter financial results on Tuesday.