Netflix has lost $24 billion in value in six days. The company lost $17 billion in value on Thursday, the day after its July 17th quarterly report. The report showed that the total number of subscribers to the ubiquitous streaming had declined for the first time. The report also revealed that the company had added 2.7 million subscribers worldwide where it had projected to add 5 million. But the company’s stock began dropping before the report was made public, with shares dropping in value every day for the past nine days. Its value has dropped by 15 percent thus far, according to The Hollywood Reporter. It closed on Tuesday down $3.32 to $307.30. That gives it a market cap of $134.5 billion.
Netflix has been a solid gainer for investors. Its value has increased by 3,300% in less than nine years. Analysts have been skeptical of its ability to continue that trend. One problem is there being fewer potential new subscribers to capitalize on, making Netflix a victim of its own success.
Another is that Netflix is facing increased competition. There’s its chief rivals, Hulu and Amazon Prime Video. Propriety services like CBS All Access and DC Universe have also entered the market. Disney+, HBO Max, and an NBCUniversal platform are set to join them soon. Those services’ parent companies are also taking their content back from Netflix. As such, Netflix has had to increase spending on original content to compete.