Reasons for Netflix’s Stock Decline on Day Two

Netflix’s recent stock sell-off has been making some waves due to concerns about subscriber growth. The streaming giant’s shares fell by 10 percent over the last couple of trading sessions. Analysts are speculating that the gain from converting password borrowers into paying subscribers might have plateaued.

After closing 8.5 percent lower the day before, Netflix shares dropped by another 1.7 percent on Friday, closing at $891.11. Although this showed some recovery from the low of $858.63 during intra-day trading, it was still a significant drop from the record high of $1,064.50 just a few weeks ago.

The sell-off seems to have been triggered by comments from Netflix’s CFO, Spence Neumann, at a recent Morgan Stanley conference. Neumann mentioned that Netflix would focus primarily on big event sports like the Netflix Cup, boxing specials, NFL games on Christmas, and WWE wrestling. The streaming giant doesn’t seem likely to bid for regular or full seasons of sports rights in the near future. So, Netflix is sticking to the blockbuster sports moments that really drive viewership.

It’s interesting to see how Netflix is strategically positioning itself in the sports entertainment landscape to continue attracting subscribers. This recent stock movement is definitely something to keep an eye on as the streaming wars continue to heat up.