Netflix stock price plummeted almost 40% on Wednesday after the company announced its first loss of subscribers in over 10 years.
The stock price of Netflix fell to as low as $212.51 per share on the Nasdaq after the opening bell, down 39% from its previous close of $348.61 a share.
The sudden decline came a day after Netflix lost 200,000 subscribers during the first three months of 2022, marking the first loss of users since October 2011.
The US-based global streaming service and production company cited account sharing, revenue decline, and rising competition as major issues.
“Our revenue growth has slowed considerably … large number of households sharing accounts, combined with competition, create revenue growth headwinds,” the company told shareholders after the release of its first-quarter financial results on Tuesday.
More than 100 million households use a shared password around the world for the company’s service, with over 30 million of those in the US and Canada, according to Netflix.
