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NFLX.US

Netflix (NFLX) Subscriber Loss Shock Case

On April 19, 2022, Netflix released Q1 2022 results that shocked investors as it was the first time the streamer had reported a subscriber loss in more than a decade. According to CNBC "Netflix blamed increased competition, password sharing as well as inflation and the ongoing Russian invasion of Ukraine for the stagnant subscriber growth."

On this news, $NFLX plunged 35% and lost over $ 54 billion of its capitalization on April 20, 2022.

The conflict in Eastern Europe has indeed resulted in many Companies being required by sanctions or state requirements to leave their respective markets. At the same time, the situation for Netflix was completely different:
  1. Netflix was the beneficiary of working with Russian users, receiving from the proceeds, reducing the funds potentially available for the conflict in the country.
  2. The Company was one of the sources of Western propaganda, producing content of a liberal and democratic nature, which was more than ever welcome.
  3. Netflix received a significant share of the revenue and growth rates, the beneficiaries of which were primarily the shareholders of the Company.
  4. The departure of the Company did not in any way cause any damage and increased pressure on Russia, on the contrary, it increased the available funds, and additionally subjected its services to unlicensed access.
As a result, the decision of the Company's management:
  1. Hit the shareholders of Netflix, causing damage in excess of $54 billion in 1 day.
  2. The company indirectly provided support, in the opinion of the world community of the aggressor country, violating any principles of ESG.
Perhaps the Company's actions had the right intentions, but due to the fact of negligence or reckless actions, they ended up causing significant damage to both the national interests of their country and their shareholders

Alleged Offence
Mismanagement
Misleading Statements
Financial Misrepresentation
Malpractice
Negligence
Breach of Fiduciary duty
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
20 April 2022
Collecting participants…
Created by Stan Vick, Scout

Netflix Inc

Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and mobile games across various genres and languages. The company provides members the ability to r...

    Ticker
    NFLX.US
    ISIN
    US64110L1061
    CIK
    1065280
    Sector
    Communication Services
    Industry
    Entertainment
    Country
    USA
    Address
    100 Winchester Circle, Los Gatos, CA, United States, 95032