For the second time this year Netflix shares went into absolute freefall. NFLX is the worst performing stock in the S&P 500 this year and is down about 65% from its all-time high. Netflix shares lost more than a third of their value just this week after reporting not just a slowdown in growth, but an actual drop in subscriber numbers for the first time ever.
The streaming giant lost over 200,000 subscribers in its latest quarter—and it’s expecting even more in coming quarters. In its shareholder letter Netflix expects to lose another 2 million as competition intensifies in streaming and the biggest markets reach full saturation. The company added that it was losing revenue due to its service being shared in around 100 million households. To raise revenue, analysts expect a crackdown on account sharing is coming, as well as offering an ad-supported option. (Chart by chartr.co)