Netflix in trouble: 35 percent fall in the price of shares, investors have no faith in the future of the company
The financial condition of the popular OTT platform Netflix seems to be in a mess at the moment and investors are also leaving it. Bill Ackman's Pershing Square Holdings, which made a major purchase of Netflix shares in January this year, sold all its shares on Friday after a sharp drop in share prices. This decision has been taken after the sharp fall in the shares of Netflix and said that we are not able to make any beneficial predictions about the future of the company, which has some certainty. Let us tell you that the price of Netflix shares has fallen by 35 percent today.
In a letter sent to shareholders by Bill Ackman, Pershing Square Holdings' portfolio demands a high level of forecast in the business in which we invest. Pershing Square Holdings bought more than 3.1 million shares of Netflix in January and became one of the top 20 shareholders. Earlier, a report claimed that Netflix had to face huge losses in the last quarter as well. Actually, there has been a huge decline in the userbase of this platform for the first quarter of this year. According to the report, more than 2 lakh subscribers of Netflix have decreased in about 100 days.
After this decline, the number of Netflix subscribers has come down to 221.6 million as of the quarter ended March 31, 2022. It is worth noting that this is the first time in the history of Netflix that such a large number of subscribers has come down. However, the company had claimed that the war had resulted in a drop in its subscribers. According to the company, during the work from home in the year 2020, the growth rate of the company was very fast, but the subscribers share their accounts with each other, due to which the company is suffering.