Why zoom stock is falling tv#
Why zoom stock is falling free#

It also said for the first time that it intends to add advertising for price-sensitive subscribers, a cardinal change in approach.

Why zoom stock is falling free#

The company said it is working on ways of “monetizing,” or charging, those free riders. The big Covid boost to streaming obscured the picture until recently.” It added: “Our relatively high household penetration, when including the large number of households sharing accounts combined with competition, is creating revenue growth headwinds. The company disclosed for the first time that those 222 million paying customers were sharing their passwords with roughly 100 million other households.

“Our revenue growth has slowed considerably as our results and forecast below show,” the April 19 letter to shareholders began. The tone in the current quarter could not have been more different.

“Even in a world of uncertainty and increasing competition, we’re optimistic about our long-term growth prospects as streaming supplants linear entertainment around the world,” the letter said. Annual revenue rose 19 percent, operating profit leaped 35 percent and, most important, given Netflix’s longtime focus on subscriber growth, the company finished the year with 222 million paid subscribers, with an increase of 8.3 million in the fourth quarter. The discussion of its business was equally upbeat. Discovery : The recently formed media colossus announced plans for a free streaming service and a paid subscription streaming service combining HBO Max and Discovery+.

Cable Cowboy: The media mogul John Malone opened up about the streaming wars, the fast-changing news business and his own future.

Apple’s Will Smith Movie: After a long discussion, Apple said it will release the film “Emancipation” - the actor’s first since his infamous slap at the Oscars - in December.

Why zoom stock is falling tv#

Late-Night Talk Shows: TV executives are mulling the future of the genre, which is struggling to make the leap to the streaming world.So were Microsoft shares after the company reported robust growth in profits and revenues. But its profit beat analysts’ estimates, and its stock was up for the week. Facebook) revealed that its advertising revenue grew at the slowest pace since its founding in 2004. Other tech companies have had better experiences. Alphabet said growth in advertising on YouTube and in Google searches had slowed, and its stock then lost ground. Investors in Amazon, which on Thursday reported its first quarterly loss since 2015, took big losses in the market afterward. That’s even true for Apple, which reported earnings on Thursday that exceeded Wall Street expectations. All major tech company shares are down for the year. Netflix shares have fallen more than 40 percent since then and more than 70 percent from their peak last November.īut Netflix is hardly alone. The stock market reacted with a vengeance. In the company’s home base of North America, they suggested for the first time that Netflix has saturated the market for subscribers and will need to use other levers to increase revenue. In their latest earnings call on April 19, Netflix executives revealed not only that they had failed to reach the growth target that they had set for themselves, but said that subscriptions for the first quarter of 2022 had actually fallen. Netflix, the worst performer in the S&P 500 this year, is being treated more harshly than nearly any other. Companies that have run into problems are being punished severely. Now, though, the market has been falling, battered by red-hot inflation, rising interest rates, Russia’s war on Ukraine, a lingering pandemic and lockdowns in China. When the market is rising, and when companies have upbeat stories to tell, these narratives have often prompted further surges in stock prices that were already defying gravity. It is earnings season on Wall Street, the quarterly stretch when big publicly traded companies, including tech giants like Apple, Amazon, Facebook (which calls itself Meta), Alphabet (which owns Google) and Microsoft trot out numbers that tell stock analysts and investors how these companies have been doing. But given the competition that Netflix was beginning to face, and the debt it was accumulating, it seemed inevitable that the company’s stock would plummet if it ever had trouble adding subscribers.

Back in those prepandemic days, shares of Netflix and other tech companies were soaring. I said essentially that four years ago, warning that while Netflix’s streaming videos were a boon for consumers, the company was a risky bet for investors. And if you forget that it borrowed billions to finance two decades of exponential growth, the company would be a resounding success. Netflix has been an amazing innovator and an extravagant spender.