Netflix’s Value ‘Drops By $50Billion’ In One Day

Netflix's value has 'dropped by $50billion' in 24 hours, according to reports.
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Netflix’s value has reportedly ‘dropped by $50billion’ in less than 24 hours, according to Comic Book

The streaming service’s market value plummeted and shares ‘fell by 35%’ on April 20, which is thought to be a result of the company increasing prices and pulling out of Russia.

CEO Reed Hastings reportedly tried to reassure investors in their latest quarterly earnings call.

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He supposedly said: “I know it’s disappointing for investors, and it is for sure, but internally, we’re really geared up, and this is like our moment to shine.

“This is when it all matters. And we’re super focused on achieving those objectives and getting back into our investors’ good graces.”

It comes as one of America’s best-known investors, William Ackman, sold his $1.1bn shares in the company and took a loss of over $400m, just three months after he purchased it.

Ackman released a statement saying the reason was that the firm’s proposed change to their business model felt ‘too risky’.

It read: “While Netflix’s business is fundamentally simple to understand, in light of recent events, we have lost confidence in our ability to predict the company’s future prospects with a sufficient degree of certainty.”

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Elsewhere, the company are also reportedly ‘considering introducing adverts‘ as a way to ‘keep the costs down’ and ‘give more choice’ to consumers.

Hastings reportedly suggested the move and is believed to have claimed he was ‘against the complexity of advertising,’ but added: “As much as I am a fan of that, I am a bigger fan of consumer choice.

“And allowing consumers who would like to have a lower price, and are advertising-tolerant, get what they want, makes a lot of sense.”

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