Netflix’s two consecutive days of gains ended as the market rallied, and the streaming giant failed to beat rivals.
As the trading session closed on Tuesday, the company fell by 3.27% to $373.32 despite major US indices’ increases. The S&P 500 index rose by 0.52% to $4,358.24, and the Dow Jones Industrial Average climbed by 0.40% to $33,739.30.
Shares of Netflix last stood 0.24% higher at $374.20 in post-market trading.
Netflix’s stock value is lower than its annual peak of $477.70 posted on July 19. Furthermore, it needs to improve its performance against its competitors. On Tuesday, Apple dipped by 0.34% to $178.39, Walt Disney rose 0.34% to $84.99, while Comcast increased by 0.86% to $44.47.
Netflix’s trading volume hit 7.1 million, surpassing its average 50-day volume of 4.9 million. Even with the decline in share price, the soaring volume shows investors’ huge interest in the company’s stock.
Data indicates that the streaming site’s market cap is $166.26 billion, and its price-to-earnings (P/E) ratio is 39.51, suggesting a high earnings multiple. Netflix’s revenue has recently slowed, with a quarterly revenue of 2.72% in the second quarter of fiscal 2023.
Despite the weak performance, Netflix remains a major player in the entertainment industry. Analysts anticipate profitability for the company this year. Netflix has also delivered substantial returns to company stakeholders through book equity.
Netflix UK’s Growing Subscriber Drives Revenue Up
For the second time, Netflix unveiled UK subscriber revenue, which marked a year of substantial growth for the streaming giant.
Netflix saw growth in its UK revenue, pulling it away from losses. The company reported revenue of £1.54 billion ($1.9 billion) for the 12 months ending in December 2022. The figure shows a 12% increase in revenue from last year’s £1.4 billion.
Netflix Services UK, the primary entity that Netflix registered at the UK’s Companies House, presented the earnings. Netflix Services UK’s pre-tax profits climbed by 22% to £34.1 million in 2022.
The entity’s average paid members rose 4% last year. It also observed a 14% growth in the average money generated by each subscriber.
Netflix said the UK is its most crucial production hub beyond North America, reaffirming its commitment to making series and films in the country. Since 2020, the streaming giant has invested nearly $6 billion in producing shows such as “Heartstopper”, “The Crown”, and “Top Boy”.
