Netflix’s warning on the growth of subscribers is leading to an increase in stocks

Netflix has warned that subscriber growth will drop dramatically in the first phase, lowering its price by about 20 percent in late Thursday sales in the recent trend of investors losing shares in companies that performed well during the epidemic.

The promotional company said it would only increase 2.5m subscribers in the first three months of this year, with less than 4m added in the first quarter of 2021 and below expectations of experts which stood at 4m again.

Netflix’s disappointing prediction came as Peloton was forced to rush his second-quarter earnings to boost CNBC’s sales confidence after the company suspended its production of connected fitness products. Shares in Peloton, one of the main beneficiaries of the first Covid-19 shutdown, dropped nearly a quarter following the report.

John Foley, co-founder of Peloton and CEO [treadmills] is false ”but acknowledged that the company had the right size for our production. . . as we transition to critical climate systems. “Peloton market price has dropped in the last 12 months to less than $ 8bn from $ 50bn.

Netflix and Peloton were among the “home-based” stocks that investors raised in various stages of the epidemic and a sharp drop in their prices on Thursday comes amid growing disagreements between companies that benefited from Covid-19.

“BlackRock”real work is life”The ETF, which was established in the first phase of the virus to track companies that could thrive from long-term home-based people, is trading near a record low. It is down 9 percent from the beginning of the year and more than 40 percent below the level reached last year.

Shares at Zoom, a video conference that was found everywhere where people work from home, has dropped by 11% since the beginning of the year. Some epidemics such as e-signature expert DocuSign and Netflix Rival Roku have all dropped more than 20 percent this year.

Investors have also undermined the technical side in the hope that the Federal Reserve will raise interest rates very quickly than expected to reduce rising inflation. Rising prices reduce the cost of investing in companies that are rapidly growing future corporate profits. The Nasdaq Composite technical index entered the adjustment zone earlier this week, meaning it has dropped by 10 percent since its arrival in November.

Emerging companies like Netflix and Disney + gathered a large number of subscribers during the closing period of 2020, but a return to normalcy has reached its peak as they spend billions of dollars on new features to attract and retain viewers.

Netflix also lowered expectations for new subscribers in the last quarter of 2021, adding 8.3m against expectations from 8.4m to 8.7m. This resulted in the number of customers paying at 222m.

The gradual decline of Netflix subscribers comes despite the fact that it has collected one of the most powerful recordings ever since its inception, including a slideshow. Squid game and Do not look up, a film starring Leonardo DiCaprio and Jennifer Lawrence.

“Running wars” are leading all major ministries to spend more on content. Netflix said its spending reduced its utilization rate to 8 percent in the fourth quarter of 2021 – down from 6 percent compared to the previous year. However, Netflix did not spend a lot of money on what it predicted.

Netflix reports that “competition. . . has only grown in the last 24 months as entertainment companies around the world create their own advertisements “.

The company acknowledged that increased competition “could affect our slower growth” but said it would continue to grow in any of the countries that competitors have established.

Netflix shares fell 19.6 percent on temporary sales.