Netflix Halts Subscriber Growth After 11 Years

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Netflix Intrinsic Value – Netflix ($NASDAQ:NFLX) has been on a roll for the last 11 years, growing its subscriber base exponentially and becoming one of the most dominant streaming platforms in the world. However, that growth has come to a halt in recent months as the company has been hit by a number of headwinds. The most significant of these is the price hike that Netflix implemented earlier this year, which led to millions of subscribers cancelling their memberships. This was compounded by the fact that many of Netflix’s key markets, such as the United States, are becoming increasingly saturated, meaning that there are fewer potential new subscribers to add.

Competition is also intensifying, with new streaming services such as Disney+ and Apple TV+ launching in the last few months. This has put pressure on Netflix to not only maintain its current subscriber base, but also to grow it in the face of this increased competition.

All of these factors have led to Netflix’s subscriber growth slowing down and even reversing in recent quarters. This is likely to continue in the coming quarters, with management expecting to lose millions of more subscribers. This slowdown in growth is likely to have a knock-on effect on Netflix’s market share and earnings in the long term. As the company loses subscribers, it will also lose out on revenue and profit. This could lead to Netflix losing its position as the leading streaming platform in the world, which would be a major blow to the company. Only time will tell how Netflix will weather this storm, but it is clear that the company is facing some of its toughest challenges yet.

Market Reaction

On Thursday, NETFLIX stock opened at $184.3 and closed at $189.3, up by 2.8% from its last closing price of $184.1.

VI Analysis – Netflix Intrinsic Value

Company’s fundamentals reflect its long term potential, below analysis on NETFLIX are made simple by VI app. Netflix Intrinsic Value is around $519.7, calculated by VI Line. Now NETFLIX stock is traded at $189.3, undervalued by 64%.

Summary

Netflix’s strong subscriber growth over the past 11 years has finally come to a halt. The company’s stock price rose 2.8% the following day on the news, indicating that investors are still confident in the company’s long-term prospects. Netflix is still a strong brand and has a large customer base, so it is likely that it will continue to be a leading player in the streaming video market.