Netflix Is Down 70%. Is It Time to Buy?
The pandemic certainly threw a curveball no executive team could've been prepared for. While some businesses struggled just to survive, many companies benefited from a major tailwind thanks to the health crisis. Shelter-in-place orders, as well as other restrictions on consumer mobility, created the perfect environment for Netflix (NASDAQ: NFLX) in particular. But things have taken a turn for the worse in a more normalized economy.
With shares in this top streaming stock down 70% in 2022, is now a good time to buy?
In the first quarter of this year, Netflix only grew revenue 9.8%, and it lost 200,000 subscribers. To be fair, shutting down its service in Russia lost it 700,000 subscribers, but it still managed to gain 500,000 elsewhere. Nonetheless, the situation spooked investors, punishing the stock. Adding fuel to the fire was management's forecast that for Q2, Netflix would lose 2 million customers. For a business that has thrived over the past decade, especially during the depths of the pandemic, this was a rude awakening.
Source Fool.com
