Streaming service, Netflix came out to defend their slower subscriber growth.
Netflix said slower production of TV shows and movies during the pandemic hurt subscriber growth in the first quarter, sending shares of the world’s largest streaming service down 11% on Tuesday.
Roughly 3.98 million people signed up for Netflix from January through March, below the 6.25 million average projection of analysts surveyed by Refinitiv.
Netflix estimated it will add just 1 million new streaming customers in the second quarter. Analysts had expected a forecast of nearly 4.8 million.
Shares of Netflix sunk 11% in after-hours trading to $489.28, wiping $25 billion off the company’s market capitalization. Its stock has risen 27% over the past 12 months compared with a 63% increase in the tech-heavy Nasdaq Composite Index.