Online Public Relations Thoughts

Netflix, a darling of Wall Street, has fallen in grace. It reported losing 200,000 subscribers in the last month and is estimating a loss of 2,000,000 for the year.  Predictably, its stock has plunged.  What kind of PR and IR does the company need?  It needs to tell its story while it works to bolster its base.  The company has plenty it can talk about.  It led the way into streaming and it has produced some of the most compelling shows in recent years.  Investors will retort, "That was then.  This is now."  They do not take into account past performance in pricing a stock.  But, Netflix has a substantial core of users who aren't going anywhere.  The company needs to cater to them while working through its subscriber challenge. It might also have to accept that it is no longer a growth stock but a mature company.  That might be the hardest of all.