Netflix Stock Plummets . . . . Again
This morning Netflix stock (Public, NASDAQ:NFLX) has dropped once again. This news is sad, but it was also expected. The stock closed yesterday at around 118 dollars a share. It was down around 40-45 dollars less. This morning the stock opened at 74.90 per share. This is a significant drop considering they lost ONLY 1/24th of their subscribers. Netflix had 25 million subscribers and now they lost around a million.
I am sure that the numbers will continue to drop in the weeks and months ahead. This is a really bad decision for the company to make. The company was doing such a great job of building their brand identity and overnight I feel that they have destroyed this completely. That is going to be a tough road to manage.
Netflix’s Stock was trading at almost 300 dollars a share in July. If your recovery plan does not work for you I would have to think that Reed and fellow executives will be in the doghouse.
In a recent article from All Things D, Reed states, “We don’t have to “beat” Starz or other networks to succeed…We won’t have every movie or TV series; but we do provide enough value that consumers also want to subscribe to Netflix.”
I think part of this problem lies in Reed Hasting and company’s attitude has about other companies and how they can’t get everything. It is definitely kind of snobbish to think that they provide “enough” value that consumers want to subscribe.
Via Google Finance
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