Of the 500 stocks in the S&P 500, woke Netflix (NASDAQ: $NFLX) is performing the worst.
Back in those pre-pandemic days, shares of Netflix and other tech companies were soaring. But given the competition that Netflix was beginning to face, and the debt it was accumulating, it seemed inevitable that the company’s stock would plummet if it ever had trouble adding subscribers. Now that time has come.
Next quarter, Netflix expects to lose two million of its 200 million subscribers.
It is earnings season on Wall Street, the quarterly stretch when big publicly traded companies, including tech giants like Apple, Amazon, Facebook (which calls itself Meta), Alphabet (which owns Google), and Microsoft trot out numbers that tell stock analysts and investors how these companies have been doing.
There’s something more going on. Something additional. A form of rejection unique to Netflix. If you have Netflix, you know exactly what it is. Its menu is an infinity of shit.
Netflix has a unique problem. All the other streaming services — Paramount+, Disney+, HBOMax, ESPN+, Peacock, Amazon, and HULU, have something Netflix does not: A massive library of older, pre-woke titles.
Netflix bent over and said yes to everything. That may be the beauty of the platform, but it may also be the risk of its demise. The platform is in dire need of another home run – a heavy hitter – like House of Cards was back in the day to be able to fight off the competition and convince investors that it has still got what it takes.