Netflix shares fall nearly 40% over shock over subscriber loss, heads for worst day in two decades

J.P.Morgan halved the price target to $305 - far below Wall Street’s median target of $400

Netflix Inc (NASDAQ: NFLX) plunged nearly 40% on Wed nesday morning after the company reported its first drop in subscribers in a decade in their first-quarter earnings. This resulted in a wave of downgrades from Wall Street analysts on fears over long-term growth potential.

The streaming giant’s share dropped to $212.51 in the early New York trading session and is headed for the worst day in nearly 18 years if the losses hold.

Netflix said it had lost around 200,000 since December blaming several headwinds that affected the growth, including increasing competition and the lifting of pandemic restrictions.