The reason for $Netflix (NFLX.US)$ ’s price decline is due t...

The reason for $Netflix(NFLX.US)$ ’s price decline is due to its global paid net subscribers guidance for Q1. Netflix reported that it expects to add 2.5 million subscribers for Q1. The 2.5 million figure missed the estimate of 6.93 million new subscribers by a wide margin.

Netflix stated that rising competition was a major factor for its big Q1 guidance miss. In the streaming industry, Netflix competes with streaming services like $AT&T(T.US)$ HBO Go and $Disney(DIS.US)$ Disney+.