[Asia Economy Reporter Lee Seon-ae] Overnight, Netflix plummeted more than 35%, causing domestic media content-related stocks to simultaneously decline.
As of 9:20 a.m. on the 21st, Showbox is down 2.98% compared to the previous trading day, Chorokbaem Media is down 2.68%, and Studio Santa Claus is down 4.14%. Studio Dragon is showing a slight decline of 0.99%.
Netflix's revenue for the first quarter of this year was $7.87 billion, up 9.8% year-on-year, while earnings per share (EPS) decreased by 5.9% to $3.53. As a result, Netflix's stock price closed down more than 35% on the New York Stock Exchange overnight. It announced a surprise decrease of 200,000 subscribers in the first quarter. This is the first decline in over 10 years, which caused significant disappointment in the market as it had been expected that subscribers would increase substantially.
Jo Yong-min, a researcher at Shinhan Financial Investment, said, "The key indicator, net paid subscriber growth, decreased by 200,000 compared to the previous quarter, falling far short of the consensus of a 2.5 million increase, marking the first decline since 2011," adding, "This reflects the impact of subscription fee hikes, intensified streaming competition, and the suspension of services in Russia."
Meanwhile, on the same day, Daishin Securities stated regarding Studio Dragon, "Although Dragon's stock price fell following the decline in Netflix's stock price the previous day, there is no reason to view the future negatively based solely on Netflix's global subscriber decrease," maintaining a 'Buy' investment rating and a target price of 130,000 KRW.
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