Netflix is taking a nosedive.
Netflix stocks tanked by 11 percent during after-hours trading despite recording subscriber growth in its first quarter financial results. The investor disappointment came from the addition of just 3.98 million new subscribers, that was sharply below the 15.8 million subscribers added in Q1 2020. Netflix also eroded investor confidence by stating it only expects to add about a million subscribers in the current quarter.
Netflix blamed the underwhelming subscriber growth numbers on the coronavirus pandemic. The ensuing delay of its big-ticket shows directly affected the subscriptions. The delayed impact of the 2020 production slowdown had manifested in Q1 2021 in the form of a sparse content calendar. However, the streaming giant projects better content line-up in the second half of this year, thanks to the returning big-name franchises.