Last year’s star-studded stock got hammered again on Thursday, after three straight strong trading sessions. With decelerating growth at home, Netflix, Inc. (NASDAQ:NFLX) has lost roughly 20% of its value year-to-date (YTD). Today’s decline however, comes on concerns regarding international markets, which should be a catalyst for the stock.
Hitting an intra-day low of $90.82 on Thursday, the stock fell as much as 4.51%, and closed the day at $90.41.
The dip comes as the company faces a downturn in Australia, South Korea, and other international markets. The Sydney Morning Herald reported that Australian Treasurer, Scott Morrison, who claimed earlier that equal conditions should be set for all the online players in the country, had introduced a bill known as the “Netflix Tax.”
Although the bill aims to charge a 10% general sales tax (GST) on both overseas online companies and local ones, it was named after the world’s largest online TV network, which has become a vital force in the Australian online streaming industry. The news comes as consumers move toward local streaming services for the sake of patriotism.
Separately, the company faces claims that it is exposing teenagers to X-rated content in South Korea, as it has poor adult verification systems. Industry experts have suggested Netflix to use better systems to identify users’ ages.
Netflix has already face a temporary ban in Indonesia. Now Russian authorities might ban it as well due to lack of mass-media and broadcasting rights, and the company’s lack of willingness to negotiate over the matter. Additionally, some research firms also state that Netflix packages are two-to-three times more expensive compared to local players.
Lastly, Bloomberg reported today that a domestic movie chain, Alamo Drafthouse Cinema, was aiming to rob Netflix subscribers by offering a mouthwatering menu, which includes pizzas, hummus, beers, and adult shakes, at its cinemas. These global issues have also led to investors moving away from Netflix stock so far this year.