Netflix loses ~70% of its value in just 6 months; $50 billion wiped off in one day as it suffers first subscriber loss in more than 10 years

For the first in more than 10 years, streaming giant Netflix suffers subscriber loss, causing the company to lose $50 billion in just one day. In its earnings call on Tuesday, Netflix reported a loss of 200,000 subscribers during the first quarter. The news sent shares of Netflix to crater by more than 25% on Tuesday.

The bad news didn’t end there. Netflix also projected it would lose 2 million subscribers in the current second quarter, according to a report from CNBC. The last time the streaming giant lost subscribers was in October 2011.

“Our revenue growth has slowed considerably,” the company wrote in a letter to shareholders Tuesday. “Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally. However, our relatively high household penetration — when including the large number of households sharing accounts — combined with competition, is creating revenue growth headwinds.”

To date, Netflix has lost about 70% of its value in just 6 months. According to stock data from Google, Netflix went from around $700 in November 2021 to $218 as of the time of writing.

Once stood alone in the streaming video space, Netflix now faces stiff competition from rivals including Amazon, Disney, HBO, Hulu, Apple TV+, and other networks now offering subscription-based “Plus” services.

Meanwhile, Netflix didn’t go without Elon Musk’s notice. In a post on Twitter on Tuesday, Musk chimed in to offer his insight. He said he thinks he knows what Netflix’s issue is: The company is too woke.

“The woke mind virus is making Netflix unwatchable,” Musk tweeted.

The woke mind virus is making Netflix unwatchable

— Elon Musk (@elonmusk) April 20, 2022

Below is Netflix’s letter to the shareholders.