U.S. streaming giant Netflix closed down 21.79 percent on Friday, with its shares at $397.5. The company’s fourth-quarter earnings report, released after the bell on Thursday, showed slowing subscriber growth, and a number of investment banks lowered their target prices.
According to the financial report, Netflix expects an increase of 2.5 million subscribers in the first quarter of this year, which is significantly lower than the market expectation of an increase of 6.26 million, and an increase of 3.98 million in the same period in 2021.
Netflix has cited increased competition from other companies as one reason for the slowdown in subscriber growth, although the company has said the likes of Apple and Disney will not have a material impact on subscriber growth.
After the earnings report, a number of Wall Street investment banks lowered their target price on Netflix. UBS lowered its price target on the company to $575 from $690, Goldman Sachs cut its price target to $450 from $580, and Wells Fargo lowered its target from $800 to $600.
Netflix announced price hikes in the U.S. and Canada last week. In the U.S., monthly costs for the entry-level Basic plan are up to $1 to $9.99, the Standard plan is up from $13.99 to $15.49, and the Premium plan is up from $17.99 to $19.99.
