Home Netflix`s Market Cap Dipped by $167B Year-over-Year
Finance News

Netflix`s Market Cap Dipped by $167B Year-over-Year

Jastra Kranjec Finanace Writer Author expertise
Fact Checked
Fact Checked
Everything you read on our site is provided by expert writers who have many years of experience in the financial markets and have written for other top financial publications. Every piece of information here is fact-checked. We sometimes use affiliate links in our content, when clicking on those we might receive a commission - at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
We do our best to help you make intelligent financial decisions. Tradingplatforms.com is compensated if you access certain products or services offered by eToro USA LLC and/or eToro USA Securities Inc. and other brokerage companies. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success. This however does not affect our assessments of the brokers, their features, and their overall rating.

Over the years, Netflix has grossed over $143bn due to its ever-growing subscriber base. However, after years of continuous growth, the streaming giant continues losing subscribers, which has already wiped billions of dollars off its market cap.

According to data presented by Trading Platforms, the market cap of the streaming giant plunged by more than $167bn year-over-year.

Streaming Giant Lost 1.2 million Subscribers in 2022

Netflix has constantly been increasing its prices over the years to the point where its “premium” subscription is $20 a month, allowing its rivals to gain ground. In December last year, the streaming giant had 221.8 million paid subscribers worldwide. At that time, its market cap amounted to around $260bn, down from $267bn two months before.

However, after the company reported the first shocking subscriber loss in April, its share price dipped to the lowest point in years, wiping more than $50bn off the market cap.

By mid-2022, the number of people paying for Netflix services dropped to 220.6 million, showing a massive 1.2 million loss. At that time, the combined value of shares of the streamer plunged to $77.9bn, a 70% drop in eight months.

Although Netflix`s market cap has increased since then, reaching $99.9bn last week, this still represents a massive 62% drop year-over-year.

9% YoY Revenue Growth Despite Big Earnings Miss

Besides losing subscribers and raising doubts about its ability to grow, the streaming giant also reported a big earnings miss this year.

Netflix’s revenue for the first quarter of 2022 was $7.86bn, missing analysts’ expectations of $8.04bn. In Q2 2022, the company reported revenue of $7.97bn, up from $7.34bn in the same quarter of 2021.

But, despite the earnings miss, Netflix grossed $15.8bn in the first half of 2022 or 9% more than in the same period a year ago.

Question & Answers (0)

Have a question? Our panel of experts will answer your queries. Post your Question

Leave a Reply

Write a Review

Your email address will not be published. Required fields are marked *

Jastra Kranjec Finanace Writer

Jastra Kranjec Finanace Writer

Jastra is an editor, writer, and PR specialist with years of experience in news, research, and report writing. Over the years, she has worked in different fields of journalism and public relations, including politics, economy, and financial markets. As well as TradingPlatforms.com, Jastra has written for Inside Business,The Business Mogul, Business Today, Startups Magazine, StockApps.com, and Buyshares.

Jastra graduated from The University of Zagreb with a Master's Degree in Journalism in 2008. Since then, she has used her writing skills to publish a range of educational articles for TradingPlatforms and continues to increase her understanding of the finance and crypto space.