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Losing $60 Billion in 20 hours — Welcome to Netflix’s worst day in 18 years.
It’s never a happy day when you see an inspirational company struggle. Although, it would be sadder if one did not learn from this.
If you had invested $10,000 in Netflix in 2018, your investment would’ve been $16,650 two days ago. At this moment, it would be $10,380.
Netflix is one of those startups with a fantastic spirit. It set an example for thousands of other startups and motivated millions. That happened in the way they were growing alongside us with DVDs.
They were one of the courageous startups who looked Jeff Bezos in the eyes and told him, “Not today!” when he was trying to buy them out.
Today is their worst daily performance in 18 years.
“The truth is rarely pure and never simple” — Oscar Wilde
Sometimes a stock like Twitter would jump 25% due to Elon Musk believing in it. Other times, a stock like Meta’s would drop more than 26% because they decided to make significant changes in their future.
Netflix didn’t do any of those things that might affect their stock. Instead, they simply told the truth (They’re legally obliged to do that.)
It was the time of the quarter in which companies announced their earnings. So let’s talk about the most critical takeaways in Netflix announcements.
“What is 0.09%, really?”
If you own a few billion dollars, and I inform you that you lost 0.09% today, you wouldn’t lose sleep over it.
That’s what happened.
Netflix: “This quarter we lost 200,000 subscribers out of our 214,000,000 subscribers.”
Investors: “Did you say you lost subscribers?!”
Netflix: “Yes, but where we had to leave Russia, and people are just sharing passwords. We’re trying to fix it.”
Investors: “Fine, let’s talk about the future. How much are you growing next quarter?”
Netflix: “Umm, actually, we are predicting a loss of 2,000,000 subscribers next quarter.”
Investor: “*calling assistant* Get Disney on the line, Now!!”
