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The once dominant streaming platform Netflix is beginning to show some cracks in its armor.
After a subscriber boom driven by COVID-19 and years of cultural dominance on the streaming scene, Netflix recently reported a shocking net LOSS in subscribers. This loss could have untold ramifications on Netflix’s future, but the stock market responded pretty much immediately. This is of course less than ideal news for anyone who owns Netflix stock, but it’s especially troubling to the CEO and co-founder of the company, Reed Hastings.
Hastings owns 5.2 million shares of Netflix.
Back in October of last year, during better days when its stock price was sitting at a 52-week high of $700 per share, Hastings’ Netflix stake was valued at…
Netflix stock actually began sinking before this week’s news.
At the beginning of April, Netflix stock was valued at around $400 a share. At $400 a share Hastings’ stake was worth a still formidable…
As of this writing, it’s down to $217 per share, with most of that cratering happening in the 24 hours following the company’s troubling subscriber report.
At $217 per share, Reed’s fortune has crept down to $1.1 billion.
You can see where this could be going. With just a few more points dropping from Netflix’s share price, Hastings will his billionaire status disappear almost as quickly as the time it takes to cancel a Netflix subscription.
Most of Hastings’s wealth is tied up in the company he co-founded. Back in 2020, when Netflix was experiencing incredible subscriber growth as a result of so many people being stuck at home, he reportedly cashed some of his shares out to the tune of $616 million – a decision that’s probably looking even better in retrospect.
Netflix is going through a turbulent period right now. They’re reportedly looking at ways to crack down on password sharing among their subscribers, as well as introducing cheaper ad-supported subscription options after years of resisting advertising of any kind on the platform. Time will tell whether these measures will be enough to bring Netflix stock out of its precipitous recent decline.
Source: This post first appeared on https://www.celebritynetworth.com