Netflix is the ultimate big daddy in the OTT industry. They are by far the most powerful streaming platform and much bigger than many other platforms put together.
But things are not always ideal for them, as well.
Netflix just took a big hit—its market value dropped by $40 billion as investors panicked over slowing subscriber growth. The stock fell 4.5% on Friday, following an 8% drop the day before. Now, Netflix’s market cap stands at around $375 billion.
The decline started after analyst Robert Fishman warned that Netflix’s subscriber growth could slow in the long run. While the company has benefited from its ad-supported tier and a crackdown on password sharing, these gains may not last. Adding to investor concerns, Netflix announced that it will no longer report subscriber numbers quarterly, shifting its focus to profitability instead.
Despite the recent slump, Netflix has seen strong long-term growth. Its stock is still up 46% since March 2024. In January, Netflix reported adding nearly 19 million subscribers in the fourth quarter, boosting confidence among some analysts. Guggenheim Partners even raised its 12-month price target for Netflix shares from $950 to $1,100, citing the upcoming return of hit shows like Stranger Things and Squid Game in 2025 and the growing success of its ad-supported model.
This erasure of $40 billion is a total washout, but let’s see how it works out in the future.
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