Netflix in Rough Shape as Its Future Will be Determined This Week
These are not e best of times for streaming giant, Netflix as it prepares to report its second-quarter earnings on Tuesday in what is shaping up to be one of the most consequential moments in the company’s 25-year history.
As reported by CNN, Netflix is having a terrible year. In April, the company reported that it had lost subscribers in the first quarter of 2022 – the first time that had happened in any quarter for more than a decade.
Netflix’s stock subsequently burst into flames (currently down about 70% so far in 2022), wiping out billions of dollars in market value with the company laying off hundreds of employees.
The problems with Netflix aren’t solely tied to the company’s loss of subscribers. A weak outlook for the second quarter came to investors as a shock as Netflix (NFLX) predicted it would lose another 2 million in the spring.
The outcome of the report of its second-quarter earnings will play a huge role in the future of the company as well as the entire streaming sector.
According to Andrew Hare, a senior vice president of research at Magid, “There will be hell to pay if they report a number that is significantly higher than the 2 million loss being thrown around,” as reported by CNN Business.
