Netflix Stock Price Drops 35% after losing 200,000 subscribers

Netflix Stock Price Drops 35%, on Track for Biggest Fall in Over a Decade

For the second time this year, shares of the streaming company fell sharply after it disappointed investors

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Netflix Inc. shares were on course for their worst day in over a decade

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After the streaming giant reported that it lost subscribers in the first quarter.

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Shares of Netflix NFLX, -35.68% tumbled around 29% in premarket trading on Wednesday

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The morning after the company delivered a considerable slowdown in revenue growth and a surprise net loss of subscribers.

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While Netflix shed 200,000 subscribers in the first quarter

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The company predicted it could lose 2 million more in the second quarter

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They cut their rating on the shares to neutral from buy and lowered their price target to $355 from $575 a share.

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Pivotal Research analysts slapped a double downgrade on Netflix

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The analysts thought that Netflix could boost average revenue per user by cracking down on password sharing

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As Netflix plans to increase its emphasis on programming, take aim at password sharing

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They reduced their rating on the shares to equal-weight from overweight, while halving their target price to $300.

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J.P. Morgan joined the downgrade parade as well

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They noted that Netflix’s work on password sharing and advertising ultimately could help revenue

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