Netflix shares plummet over gloomy subscriber outlook

Shares of Netflix sunk nearly 20% on Thursday after it warned of weak subscriber growth.

The world's largest streaming service projected it would add 2.5 million customers from January through March, less than half of what analysts had forecast.

It also missed expectations for net new subscribers in the last quarter of 2021.

The slowdown in subscriber growth comes despite a healthy catalogue of content, including the hit show Squid Game and star-studded films "Red Notice" and "Don't Look Up".

Netflix is facing a tough business environment, as pandemic restrictions ease and competition becomes more intense.

Streaming rivals Disney and HBO are pouring billions into creating new programming.

Netflix acknowledged that the competition may be affecting marginal growth, but added that it was still growing in every country where new streaming options have launched.

The company reported revenue of $7.71 billion, which was in line with expectations.