It’s hard to see the current situation at Netflix (NFLX) as anything short of disastrous. The video streaming company reported a historically bad quarter in Q1 202, losing subscribers for the first time in a decade. Netflix lost 200,000 subscribers, falling well short of its guidance (+2.5 million subscribers). A decision in early March to suspend service in Russia after its invasion of Ukraine resulted in the loss of 700,000 subs. While Netflix expects subscriber growth to be positive for the year, operating margin guidance of 19%-20% for 2022– flat– is down from its earlier expectations for an average annual margin expansion of 19%-20%.
The stock is now approaching a 4-year low -- plummeting over 40% in the last four sessions since reporting its quarterly results.
Boardroom Alpha's Joanna Makris takes a deep dive into Netflix situation, their executive team, and directors to assess whether or not it can be turned around.
The full report looks at:
- Executive compensation
- Insider buying / selling
- Their unique Co-CEO structure
- Red Flags
- and more