Not Netflix: Will all lockdown winners suffer the video streamer's fate?

Not easy to predict demand

clock • 4 min read
Anna Macdonald of Amati Global Investors

Anna Macdonald of Amati Global Investors

Netflix shares dropped 36% after announcing that its first quarter subscriber numbers had fallen for the first time in 10 years, and the stock is now off more than 67% year to date.

High profile investors such as Bill Ackman sold their holdings after the company forecast further falls to come in the second quarter, despite a strong release slate. Netflix is not alone as other ‘stay-at-home winners' are struggling to lap last year's numbers, facing higher costs and dwindling demand. The pandemic boost may have obscured some underlying trends that were mounting anyway. Other companies had been encroaching on Netflix's territory - for example companies with valuable IP (Disney, with its Marvel, Pixar and original franchises) and those that have considerable distributio...

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