Netflix Stock Continues Downward Spiral
And this follows Wednesday, when Netflix stock plunged by as much as 25% to close at $60.28. Common thinking on the Street, is that subscriber growth is simply too slow.
It probably doesn’t help that Consumer Reports just put out a report indicating that while Netflix dominates the streaming market, its customers are far from satisfied. The company scored a 69 out of 100 in the customer satisfaction department.
It probably also doesn’t help that, even though CEO Reed Hastings hinted in a letter to investors that the company could possibly find ways to work with HBO, HBO told Reuters that it has no plans to work with Netflix.
Sure, DVD subscribers can access HBO shows as they’re available on the format, but DVD subscriptions are also on the steep decline. DVD revenue was down to $291 million from $320 million the previous quarter.
It probably also doesn’t help that Redbox has an instant streaming service on the way.
At the time of this writing, Netflix stock is at $56.74.