Netflix Loses $9B In Value IN ONE DAY: Everything Investors Need To Know
- 7 months ago
The streaming behemoth Netflix Inc. (NASDAQ:NFLX) found itself in a market maelstrom as its market capitalization nosedived by a staggering $9 billion during Wednesday’s session.
The catalyst? A word of caution from the company’s CFO, Spencer Neumann, delivered at a Bank of America Conference.
Netflix shares plummeted, diving by over 5% during the afternoon trading, and shaping up to become the third-worst session endured by the streaming giant in 2023.
Neumann’s revelation about the company’s expected profit margins was at the center of the storm.
He offered a subdued forecast for operating margins, pegging them in the range of 18% to 20%, a far cry from the prevailing consensus, which stood firm at 22.1%. In an attempt to cushion the blow, he also stressed that Netflix is “nowhere near” its peak margins.
The catalyst? A word of caution from the company’s CFO, Spencer Neumann, delivered at a Bank of America Conference.
Netflix shares plummeted, diving by over 5% during the afternoon trading, and shaping up to become the third-worst session endured by the streaming giant in 2023.
Neumann’s revelation about the company’s expected profit margins was at the center of the storm.
He offered a subdued forecast for operating margins, pegging them in the range of 18% to 20%, a far cry from the prevailing consensus, which stood firm at 22.1%. In an attempt to cushion the blow, he also stressed that Netflix is “nowhere near” its peak margins.