Netflix is expected to report second-quarter earnings after Wall Street closes Tuesday.
The streaming service’s shares have dropped nearly 70% in 2022. In a first-quarter report, Netflix noted a loss of 200,000 subscribers — its first subscriber decline since October 2011.
An exodus of an additional two million subscribers was projected by July, according to a Netflix shareholder letter.
In predicting a slumping second quarter, Netflix noted that it is “usually less than Q1.”
“Our revenue growth has slowed considerably, as our results and forecast below show,” the report stated. “However, our relatively high household penetration — when including the large number of households sharing accounts — combined with competition is creating revenue growth headwinds.”
‘THIS IS WHY WE FIGHT’: CASEY DESANTIS RESPONDS TO GAVIN NEWSOM
Since the last report, Netflix has debuted the fourth season of Stranger Things, which has reportedly been the second-most watched Netflix series ever — behind only Squid Game.
The success of the latest season of Stranger Things is not projected to offer enough help to right the streaming service’s subscriber trend.
“There is little evidence that the new adventures of the kids from Hawkins drove a change in the outlook for new subscribers,” Barron’s financial magazine noted.
After Netflix’s first-quarter reporting, Elon Musk diagnosed Netflix’s loss, saying, “The woke mind virus is making Netflix unwatchable.”
The woke mind virus is making Netflix unwatchable
— Elon Musk (@elonmusk) April 20, 2022
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
The earning reports follow Netflix’s recent announcement that it signed Microsoft as an advertising partner.
