Netflix Could Fall Another 50%

Netflix Could Fall Another 50%

PARIS, FRANCE - NOVEMBER 02: Netflix logo is displayed during the 'Paris Games Week' on November ... [+] 02, 2017 in Paris, France. Netflix is an American company offering streaming movies and TV series on the Internet. 'Paris Games Week' is an international trade fair for video games and runs from November 01 to November 5, 2017. (Photo by Chesnot/Getty Images) With the subscriber loss in 1Q22 and guidance for further subscriber deterioration in 2Q22, the weaknesses in Netflix's (NFLX) business model are undeniable, as I've been pointing out for years. Even after falling 67% from its 52-week high, 56% from my report in April 2021 and 39% since my report in January 2022, I think the stock has much more downside. Strong competition is taking market share, limiting pricing power, and making it clear that Netflix cannot generate anything close to the growth and profits implied by the current stock price. Netflix lost 200, 000 subscribers in 1Q22, which is well below its prior guidance for 2. 5 million additions and is the company's first subscriber loss in 10 years. More alarming, management guided for an additional loss of 2 million subscribers in 2Q22. I expect subscriber contraction could