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Netflix’s Share Plunges 13% as Growth Stalls, Let’s Find Out Why:

The easing of pandemic lockdown is taking a far more severe toll on Netflix’s Inc.’s growth than anticipated. Netflix’s Share Plunged as much as 13% on Tuesday. The streaming service platform just added 3.98 million subscribers to its benchmark falling well short of the set estimate designated by Wall Street.

The current quarter will be the most challenging in the history of Inc., as the company is looking to bank on 1 million subscribers roughly from the estimated 4.44 million subscribers put down by the analysts. has been warning for months that the growth could steep after people emerge out from the Covid hibernation mode. Although the analysts expected a stall, such a drastic downfall wasn’t there to be recorded while deciding on the estimates.

The first quarter of 2020 has been the strongest in the company’s history, with 15.8 million new customers, and Netflix’s face was surprisingly brisk in the fourth quarter. The last three months earmarked the slowest first quarter since 2013 when  added about only 3 million customers.A lack of new customer engagement shows might be one of the crucial factors adding to the ongoing slump. The company’s output slowed due to the fallout from the pandemic, which led to production delays. No official statement has been gathered from the company’s officials regarding the slump and what could be the primitive aspects that the company looks to focus on.

Netflix’s was able to sustain its release schedule for the first several months of Covid-19 lockdown because it had already finished many shows. Now, it has fallen out of the pecking order for new customers as it hasn’t gauged the customer penetration by launching intriguing shows that compel them to binge-watch. It has been a major roadblock in the company’s path to growing its avenue across the world.

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