Netflix to stop sharing user count, shares slide

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STORY: Shares of Netflix slid more than 8% Friday morning after the streaming service surprised investors by saying it would no longer disclose key subscriber and revenue numbers.

The announcement came late Thursday when the company reported earnings. Netflix missed second-quarter revenue forecasts, and further spooked Wall Street with its decision to withhold quarterly subscriber additions and average revenue per subscriber beginning in the first quarter of 2025.

The streaming pioneer’s move to hold back those crucial metrics – which have traditionally helped boost its stock price – feeds into analysts’ expectations that subscriber growth is waning amid fierce competition.

Netflix did handily beat subscriber expectations for the first quarter, as its cheaper, ad-supported plans helped attract 9.3 million new customers, nearly double the forecast of analysts polled by LSEG.

But executives have urged investors to focus on overall revenue and operating margins when assessing the company's progress, rather than customer additions.

Friday’s stock slide also weighed on shares of rivals Roku and Walt Disney. If the losses hold, Netflix could see more than $22 million wiped off its market capitalization.