“As long as the users grow, the stock price rises with it” – the market’s original simplest and crudest investment logic has shifted. The epidemic boom is over and streaming platforms in general are facing a growth crisis.
From Netflix to Disney +, to HBO, Apple TV+ and Amazon Prime Video, a blossoming array of platforms and content has captured the attention of countless watchers. But the hardest thing for the capital markets to forget was Netflix’s dramatic drop in share price after two consecutive quarters of earnings as new subscribers plummeted and earnings outlooks deviated sharply from expectations. With more attention focused on health during the epidemic, TV subscribers are asking how do I add Beachbody to my smart TV.
U.S. streaming stocks, all of them, are plummeting. Netlifx has fallen more than 67% so far this year, and its market cap is just under $86 billion. It’s not the same as last October when it surpassed Disney with $300 billion.
Disney, which made the switch from traditional media to streaming, has added 20 million subscribers in the past two quarters, but it remains one of the worst performers among the Dow Jones Industrial Average components, down nearly 30% for the year. In addition, some burdensome functions like the narrator on Disney Plus may make people annoying, and many people want to know how to turn off narrator on disney plus.
HBO, which is home to the best series like Game of Thrones and Westworld, has added 12.8 million subscribers in the past year. How to sign out of HBO MAX on Roku has been one of the most searched topics lately.
For the streaming industry, the most important data that investors previously looked at was the rate of subscriber growth. The simple, brutal logic was that if you saw subscriber growth, the stock price would go up.
But as the leading Netflix subscription subscribers plummeted and the market was jolted straight into pitching diving stock prices with their feet, investors began to panic: Is there really any value in investing in streaming media now that the epidemic boom has passed?