Netflix stock is in volatility, will its stock drop another 50%?

Many subscribers of Netflix have decided to stop their subscription, which in turn has caused shares in Netflix to drop by 35%. $50 billion of the firm’s market value got wiped out from this turn of events. One of America’s best known investors, William Ackman, decided to toss his $1.1 billion investment in Netflix, which meant it took a loss of more than $400 million.

So, what does all of this mean for the future of Netflix, and for the future of any company that has a similar set of circumstances happen to it?

Looking at the data, it is really hard to predict what will happen. Netflix is currently trying to change its business model, but it has a long way to go to catch up to the ranks it was at before. However, the mere fact that Netflix is trying to change its business model is a good sign that it hasn’t given up hope yet. 

Take a look at this stock chart that shows where Netflix was a short while ago, and where it is now: 

What might be promising for Netflix is that it is not the only company to have ever experienced a change such as this. Take a look at the following chart on Facebook; it has seen a drop recently as well.

The concluding point here is that time will tell for what will become of Netflix. We will get the answer at some point in future, it is just a waiting game at this point, which is understandable. In this case we can ask ourselves whether good things await.