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• The stock has been struggling since it reported a low subscriber growth in January
• Its shares fell more than 2% to around $332 each, a 52-week low
Netflix's ( NFLX) stock has lost all the gains it got during the pandemic on Monday. The stock has fallen consistently from the all-time highs of November 2021.
Its shares fell more than 2% to around $332 each, a 52-week low. That's more than 50% down from the company's 52-week high of $700.99, which it hit in mid-November.
Netflix reported huge gains during in 2020 and 2021. The pandemic had forced everyone to sit at home, but consumers are now moving from streaming services towards out-of-home entertainment like movie theaters, restaurants and theme parks.
In its most recent earnings report, Netflix reported underwhelming subscriber numbers.
Increasing competition
In January, Netflix forecasted just 2.5 million new net subscribers for next quarter. Its 8.3 million adds in the fourth quarter were slightly under its forecast of 8.5 million.
Netflix plans to raise prices on higher-end plans in North America this spring, which might not sit well with the customers. The monthly cost for its basic plan rose $1 to $9.99, the standard plan jumped from $13.99 to $15.49 and the premium plan rose from $17.99 to $19.99.
Many new streaming giants have undercut Netflix's premium subscription prices by a wide margin. Walt Disney's Disney+ can be subscribed for a minimum of $8 per month, while the cheapest Netflix subscription costs $10 per month.
Last month, Netflix's license of several Marvel shows ended and reverted back to Disney. Now "Daredevil," "Jessica Jones," "Luke Cage," "Iron Fist," "The Punisher," and "The Defenders" are available on Disney+.
To undercut the losses, Netflix is now diversifying into the video-gaming sphere. Last year it acquired its first game developer, Night School Studio in September. This year it plans to buy mobile games developer, Next Games, based in Finland.
(Inputs from CNBC)