Netflix shares were down about 37 percent Wednesday after the company announced a loss of 200,000 subscribers in the first quarter of the year.
Wednesday’s plunge is Netflix’s largest drop in nearly two decades and wiped more than $50 billion of Netflix’s market value.
In October 2004, the company’s shares fell almost 40 percent in early trading when it reduced its monthly DVD subscription prices amid speculation that Amazon would be starting its own online video rental service.
This time, Netflix said the losses were caused by a combination of factors, including password sharing among households and a rise in competition, with traditional cable, broadcast television and other new streaming services entering the market.
The company also pointed to increased inflation and the suspension of its service in Russia as a result of the country’s invasion of Ukraine.
The second quarter isn’t looking any better for Netflix: The company warned its shareholders that it expected to lose another two million subscribers over the next three months.