Shares in Netflix, which had lost $24 billion in value during nine consecutive trading days of decline, bounced back with a 3.5% gain on Wednesday.
The stock closed at $317.94 on trading volume nearly twice the average level. The nine-session slump has been the longest losing streak for the company in five years.
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Netflix has seen its shares battered after last week’s second-quarter earnings report, which showed a small decline in U.S. subscribers and a global subscriber tally millions lower than company and Wall Street estimates.
The quarterly numbers rekindled a media narrative that the company is, among other things, vulnerable to competition, overspends on programming, has a negative cash flow and has raised its prices too aggressively. Wall Street analysts, on the other hand, largely stuck by the company and meany long-term bulls reaffirmed their positive ratings on the company’s shares.
Timing played a role, as well, with Stranger Things 3 coming onto the platform just after the June 30 end of the quarter. Executives who took part in the company’s video interview to discuss the earnings described the quarterly miss as disappointing but not indicative of larger problems.
With a market capitalization of $134 billion and more than 152 million global streaming subscribers, Netflix remains the streaming leader by a fair margin. In the coming months, though, Disney will launch Disney+, WarnerMedia will roll out HBO Max and NBCUniversal will also enter the streaming fray. Apple has also promised to enter the streaming wars, though details are scarce about exactly what its service will look like.