Netflix NFLX.O shares fell on Friday, as its surprise move to stop sharing subscriber additions and average revenue per member from 2025 sowed doubts in investor minds about growth peaking in some markets for the streaming pioneer.
\nThe decision to hold back crucial metrics that have moved the stock market comes as Wall Street analysts expect subscriber growth for Netflix in North America and Europe to saturate.
\n\u201cInvestors like transparency and the market has judged Netflix on its subscriber success ever since it has been on the stock market,\u201d said Russ Mould, investment director at AJ Bell.
\n\u201cTo many, it is a valuable metric and hiding it comes at a time when many people are wondering if Netflix has reached maturity in many regions.\u201d
\nNetflix added new customers in the first quarter, but its second-quarter revenue forecast missed market expectations of $9.54 billion late on Thursday. It also decided not to report subscriber additions and average revenue per member from the first quarter of 2025.
\n\u201cWhile this is partially a sign of Netflix\u2019s unrivaled market share, it also raises questions about the streamer\u2019s ultimate ceiling in the current landscape,\u201d said Brandon Katz, entertainment industry strategist for Parrot Analytics.
\nNetflix\u2019s stock fell 6.5% to $570.34 in early trading and if losses hold, its market valuation was set to fall more than $17 billion to about $247 billion.
\nThe slide also weighed on the shares of peers Roku ROKU.O and Walt Disney DIS.N, which fell 1.5% and 1.2%, respectively.
\nOther technology companies such as Meta\u2019s META.O Facebook and social platform X too had earlier stopped reporting monthly active users as growth slowed.
\nFor Netflix, investors will also keep a close watch on how sustainable is its paid sharing initiatives, Goldman Sachs analysts said, while the removal of crucial metrics will add to the debate.
\nOn the brighter side, Wedbush analyst Alicia Reese said competitors are likely to continue to struggle in their effort to replace Netflix\u2019s business model, thanks to its \u201cinsurmountable lead\u201d.
\nNetflix said its ad-supported streaming plans helped attract 9.3 million new customers, nearly double the consensus forecast of analysts polled by LSEG, bringing the global tally to 269.6 million at the end of March.
\n\u201cThe bigger question now will be how Netflix continues to keep churn to a minimum, when rivals catch up with their own cheaper plans,\u201d said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.
\n(Reuters)Data. Netflix, subscriber growth, revenue per member<\/p>\n","protected":false},"excerpt":{"rendered":"
Netflix’s decision to stop sharing subscriber additions and average revenue per member from 2025 has caused concern among investors about growth peaking in some markets. The streaming pioneer’s stock fell 6.5% in early trading, leading to a potential market valuation drop of over billion. This move comes as Wall Street analysts anticipate subscriber growth for Netflix in North America and Europe to saturate. Despite this, Netflix added 9.3 million new customers in the first quarter, bringing the global total to 269.6 million at the end of March. The decision to withhold key metrics has sparked debate among investors about the streamer’s ultimate potential in the current landscape.<\/p>\n","protected":false},"author":5,"featured_media":8897,"comment_status":"open","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[7140,186,33,3471,3761,207,201,4818,249,3767,1991,613,2753,3404,3110,34,252,1045,6841,4620,5612,2357,7164,3798,552,3763,7139,2707,1682,1571,2439,255,5969],"class_list":["post-8896","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other","tag-average-revenue-per-member","tag-business","tag-companies","tag-customers","tag-disney","tag-entertainment","tag-europe","tag-expectations","tag-facebook","tag-growth","tag-industry","tag-insider-economy","tag-investment","tag-investors","tag-market-share","tag-markets","tag-meta","tag-netflix","tag-platform-x","tag-report","tag-revenue","tag-revenue-forecast","tag-revenue-per-member","tag-shares","tag-stock-market","tag-streaming","tag-subscriber-growth","tag-surprise-move","tag-technology","tag-transparency","tag-valuation","tag-wall-street","tag-wondering"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"\n