Why Is Netflix Stock Down So Much From Its Peak? CEO Reed Hastings Has A Scary Thought

Zinger Key Points
  • Reed Hastings touched on a wide range of topics Wednesday afternoon at the DealBook Summit.
  • He believes the stock is down so much because investors are scared the company will lose share to streaming competitors.
Why Is Netflix Stock Down So Much From Its Peak? CEO Reed Hastings Has A Scary Thought

Reed Hastings, co-founder and co-CEO of Netflix Inc NFLX, provided thoughts on a wide range of topics Wednesday afternoon at the DealBook Summit. He even touched on why the streaming company's stock is down so much from its peak.

What To Know: The stock slump has to do with investors being scared that the competition will beat Netflix in streaming, Hastings said, according to a tweet from CNBC's Alex Sherman.

Netflix will have to show investors that the competition can't win, Hastings reportedly said.

The Netflix co-CEO also touched on a few things he regrets, including not introducing an ad-tier sooner and failing to acquire Wordle before the New York Times snatched it up. 

Netflix's new ad-tier lets customers step into the Netflix experience at a lower price. Hastings noted that he didn't realize how much money had shifted from linear TV to streaming, as he was overly focused on the ad dominance of Meta Platforms Inc META and Alphabet Inc GOOG.

Hastings also shut down some speculation around potential acquisitions and business expansion plans. 

Netflix has no plans to be acquired by Microsoft Corp MSFT and a potential acquisition was 0% of the company's motivation to ink a deal with Microsoft, he said. 

Hastings also shot down rumors that the company is planning to build a theatrical release business. Theatrical is and will continue to be a promotional tool for Netflix, he stressed.

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Lastly, Hastings commented on Meta CEO Mark Zuckerberg and Tesla Inc TSLA CEO Elon Musk.

The world should be thanking Zuckerberg for advancing metaverse technology, he said. Although it may not be good for shareholders in the near term, Hastings said he wouldn't bet against the Meta chief. 

He also believes the Tesla CEO's business efforts are good for humanity. The Netflix co-CEO added that he thinks people are being "nit picky" about Musk and his early troubles with Twitter. 

"Give the guy a break," Hastings reportedly said. 

See Also: Did The Simpsons Predict Elon Musk Buying Twitter? This 2015 Episode May Have Been Prophetic

NFLX Price Action: Netflix has a 52-week high of $654.52 and a 52-week low of $162.71.

The streaming stock was up 8.75% at $305.53 on Wednesday, according to Benzinga Pro.

Photo: Helge Thomas from flickr.

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