Netflix dashed hopes for a quick rebound after forecasting weak first-quarter subscriber growth, sending its shares down nearly 20% and wiping away most of its remaining pandemic-fuelled gains from 2020.
The world's largest streaming service projected it would add 2.5 million customers from January to March. This was less than half of the 5.9 million analysts had forecast, according to Refinitiv IBES data.
Netflix tempered its growth expectations, citing the late arrival of anticipated content, such as the second season of "Bridgerton" and the Ryan Reynolds time-travel movie "The Adam Project." Shares of Netflix plummeted nearly 20% to $408.13 in after-hours trading on Wall Street last night.
Competitor Walt Disney, which has staked its future on building a strong streaming business, saw its shares sink 4%. Streaming device Roku fell 5%.