Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Netflix shares crash as subscriptions fall

After reporting a first drop in subscribers in a decade, Netflix shares lost almost 25% in extended trade. The company is now looking at ways to stop subscription sharing.

(Video Transcript)

Netflix earnings review

In extended trade last night, Netflix saw its shares tumble by a quarter of its entire value.

Almost 25% was wiped off the share price in extended trade on the IG platform last night as a result of earnings coming through for the latest quarter, disappointing by a fair margin and subscribers down as well for the first time in ten years.

The streaming giant lost 200 000 subscribers in the first three months of the year. That's the first in a decade, falling short of its forecast of adding 2.5 million more new people to its subscription list.

The group partly explained this performance by the suspension of its service in Russia, resulting in the loss of around about 700 000 members of its role in the Russian economy. The group reported earnings per share (EPS) of $3.53 on revenues of $7.87 billion.

The group also warned that it will address the password sharing issue and wants households sharing passwords to start paying individually. Netflix estimates more than 30 million US and Canadian households are using a shared password to access its content - 100 million households worldwide.

You've only got to look at the share price to realise what happened. You can see quite clearly the effect of all this last night.

Netflix - technical analysis

This is an extended trade, so it isn't represented by the normal chart. It will start on the back foot when things get underway later on in the cash session. It has opened on extended trade on this Wednesday morning.

You can see a very small green candle but, broadly speaking, it is holding onto much of the gains that it lost last night. Just going back, you can see quite clearly this is a level not seen here since the 26th of September 2019.

Let's remind ourselves as to what happened during the Covid lockdowns, the Covid lows represented by the bottom of this blue box down here at $290.39. The stock then went on to make 141% upside, taking us all the way up to over $700 a share. And then, since that high point back on the 18th of November last year, we've seen a really big reduction in value and that 52% was as at the close last night.

If you extend that down you can see the total value lost in the company since that period, since the record high, which has been a whopping 63%. So, we're expecting a big drop at the start today for Netflix on the cash session.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.