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Roku, Disney, other streaming stocks slide after Netflix report

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Reed Hastings, Netflix’s Co-CEO speaks at the 2021 Milken Institute Global Conference. It was held in Beverly Hills (California), U.S.A., October 18, 2021.

David Swanson | Reuters

After extended trading Tuesday, streaming video company stock prices fell. NetflixThe sector leader reported earnings, which showed that subscribers were losing for the first-time in over a decade.

The shares of DisneyDropped as high as 5% while RokuAfter rising close to 8% in regular trading, the stock fell by 6% Warner Bros. DiscoveryHBO Max’s owner, a man named Jeremy, had a loss of 4%. ParamountViacomCBS was formerly ViacomCBS. It has declined by nearly 6%.

Investors were concerned about a wider slowdown in consumer spending, as the news revealed.

Netflix fell to more than 25% in extended trading on TuesdayAfter reporting a loss in subscribers of 200,000 in the most recent quarter, and projecting losses of 250,000 subscribers for its second quarter.

The video streamer also warned on TuesdayIt could crack down password sharing to increase its paid subscribers. Netflix allows its users of 222 million to share information about their accounts with family and friends during its explosive growth. But now, it is asking all its users to make a payment. According to Netflix, as many as 100,000,000 people stream Netflix using someone else’s password.

Netflix and the other streaming service providers were significantly boosted by the pandemicConsumers spent more money and time streaming video content at home.

But as the economy reopens in the U.S. and people spend more time out of their houses, it’s almost as if the pandemic never happened — at least in terms of the relative weakness of Netflix stock.

Shares fell to their lowest point since November 2019 on Tuesday. Stocks have fallen more than 40% in the past year and by 60% since its November 2021 peak.

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