As more businesses and communities reopen after COVID-19 closures, Netflix stocks are falling due to a lack of new subscribers.
According to The Wall Street Journal, Netflix Inc. (NFLX) stock ended Oct. 20 at $525.40 per stock and opened with a five percent decrease, making each stock $495.26 the following day. However, this is still a 65% increase from the stock market crash that took place in March as a result of a mandatory stay-in-place order issued to prevent the spread of COVID-19.
Netflix released its quarter three Shareholder letter on Oct. 20.
“As we expected, growth has slowed with 2.2m (million) paid net adds in Q3 vs. 6.8m in Q3’19,” Netflix said in a statement.
This is also a significant drop in subscribers compared to the 10.1 million new subscribers the streaming company gained in quarter two.
Despite not meeting quarter three’s goal, the 2.2 million pushes 2020’s count to 28.06 million new subscribers. In 2019 the company ended the year with 28 million new subscribers total, making this year already on par with beating their goal.
Netflix has been one of the very few companies that have actually benefited from stay-at-home orders and mandatory business closures due to the increased viewership.
While the stock may be going down in value today, analysts are still projecting Netflix to have a successful year and expect the stock to rise in value by the end of the year.