Netflix Stock Might Get Worse Before It Gets Better, but Here's Why Not to Sell
Netflix (NASDAQ: NFLX) stock is down about 70% from a year ago, resulting in nervous investors concerned for the company's future. While the numbers seem to suggest it's time to cut losses and jump ship, here's why it's a good idea to be patient while Netflix makes changes and essentially rebrands its business.
In Q1 2022, Netflix reported a loss of 200,000 subscribers and a projection to lose a further 2 million in Q2 2022. The report shook perceptions of the streaming giant that previously saw the company as a model for success within the industry.
Since the day Netflix lost $54 billion within 24 hours after its stock price plummeted more than 35%, the company has gone through significant changes. After years of rejecting the introduction of ads on its platform, Netflix announced an ad-supported tier earlier this year. In another diversion from its business style, the company also revealed plans to crack down on password sharing.
Source Fool.com
