NETFLIX SHARES PLUNGE 60% IN ONE YEAR

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Netflix($NASDAQ:NFLX) has been on a roller coaster ride over the past year. The stock is down over 60% from its all-time high, reached in November 2021. The company has been facing slowing growth in revenue and, for the first time in its history, a decline in subscribers. This has investors worried about the long-term prospects of the company. Netflix has been betting big on original content to drive growth. However, the company has been facing stiff competition from the likes of Amazon and Disney, who are also pouring money into original content. In addition, the rise of streaming services like HBO Max and Peacock has made it more difficult for Netflix to attract and retain subscribers. Despite the challenges, Netflix remains one of the most popular streaming services in the world. It will be interesting to see how the company navigates the competitive landscape in the coming years.

Market Price

Netflix shares have plunged 60% in the last year, and on Thursday they opened at $230.2 and closed at $234.0, up by 1.9% from the last closing price of 229.6. So, what happened? Netflix has been facing increased competition from the likes of Amazon, Hulu, and others in the streaming video space. In addition, the company has been investing heavily in content and expansion, which has led to increased debt and a higher burn rate. While Netflix still has a large and loyal subscriber base, it will need to continue to invest in content and innovation to keep them from fleeing to other providers.

VI Analysis

A company’s fundamentals reflect its long term potential. The below analysis on NETFLIX is made simple by VI app. According to VI Star Chart NETFLIX is strong in growth, profitability, and weak in asset, dividend. NETFLIX is classified as ‘gorilla’, a type of company that achieved stable and high revenue or earning growth due to its strong competitive advantage. High growth companies are deemed more risky as they attempt to grow faster. NETFLIX has an intermediate health score of 4/10 considering its cashflows and debt, might be able to safely ride out any crisis without the risk of bankruptcy.

Summary

Netflix shares have plunged 60% in the last year, and the company is now facing some serious questions about its future. The problem for Netflix is that it is now competing against some very well-funded and established companies in the streaming video space, and it is not clear that it can continue to grow at the same pace. Investors are clearly worried about the company’s prospects, and the stock is down sharply from its highs. Netflix is still a strong company, but it faces some serious challenges in the coming years.