Netflix Shares Take A Tumble As Demand Goes South!
Shares in Netflix - global streaming giant - experienced a massive sell-off during Wednesday trading after the company reported that it would miss its projections for subscribers, engendering new uncertainty about its ability to sustain current growth trajectory as competition grows, and as the pandemic lockdowns ease globally.
According to figures released, although Netflix had been projected to gain 3.32 million new subscribers in quarter three of 2020, the streaming behemoth only managed just over 2 million additional subscribers. Missing the projections spooked investors who started wondering whether the wheels are beginning to wobble on the Netflix train.
Industry analysts are now also beginning to issue cautionary notes to investors, saying that Netflix may now be displaying signs of a "maturing business" and the seemingly "Infinite growth can't go on forever."
Netflix's management has, however, played down the current market rout, saying that the company's future is of course, very rosy. "We're confident that we'll have an exciting range of programming relative to other entertainment service options," the company executive said in a statement.