The case we are reporting to you today has something of it very curious or at least bizarre, and is probably part of that intricate and contradictory machine that is the great stock market for the entertainment industry. In fact, according to what was reported by various reports, the hegemon of American streaming, that is to say Netflix it is almost inexplicably plummeted in shares.
Facts first, according to estimates of Wall Street, Netflix’s results for the year 2021 were below expectations, with an overall number of users of 8.3 million approximately, compared to the expected 8.5 million. Although 200,000 fewer users are a considerable induced activity, they certainly do not represent a total failure, quite the contrary!
The numbers are overall very good for the US giant. Yet, that inflection was enough to create total chaos in the markets and shareholders that, like an avalanche starting from a small pebble, did much more damage than the very reason it was caused. The value of Netflix’s shares fell by 24.27% about $ 508.25 to about $ 400 in trading, all in just under 24 hours.
In short, the situation has turned into a financial tumble somewhat anomalous and rather unexpected, scoring a negative record never touched since the distant 2012. However, let’s be clear, Netflix is such an immense company that even a collapse of this magnitude should not cause permanent damage, to the point that the executives said they were extremely calm on the matter.
According to some analysts, there could be numerous causes and reasons for this unexpected collapse, and they could be traced back to market saturation of digital streaming, which in the last two years has reached unimaginable levels.
Furthermore, it seems likely that after the immense success of the platform in 2020, probably also due to increases in users due to the pandemic (which has forced millions of people home), with the recent reduction of lockdowns, this number has gradually decreased. However, these are currently only theories.
After all, the world of stocks is also made up of financial inflections that can change the wind in ways that are sometimes very difficult to predict and manage if you are on board a small company. This of course is certainly not the case with Netflix that with extreme probability it will pass beyond this momentary fall without too much difficulty.
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