Streaming Stocks Are Slowing Down. Should You Really Buy Now?
Investors keeping close tabs on the streaming market likely know that Netflix (NASDAQ: NFLX) lost subscribers again last quarter. In fact, its second-quarter loss of nearly one million customers follows the first quarter's attrition of 200,000 paying subscribers.
While Russia's invasion of Ukraine and inordinate growth in the latter half of 2021 at least partially explains the contraction, it's still a very un-Netflix-like outcome. This is the pioneer and king of the streaming market, after all, and its 221 million customers are still only a fraction of the world's total households.
What's less apparent but perhaps more important is that it's not just Netflix bumping into a headwind. While the streaming industry continues to grow, the pace of that growth is slowing -- dramatically. Though we're not there quite yet, worldwide saturation of the addressable market may be in view. Investors should adjust their expectations accordingly.
Source Fool.com
