Netflix shares got absolutely hammered after the streaming giant reported its Q4 earnings Thursday after the bell. Across the board, it was a solid Q4 performance from the reigning streaming leader. However, guidance for the first quarter is what sent investors into a frenzy in the after-hours session Thursday.

The stock sank 20% the following day shedding nearly $100 per share on the weak outlook. Its market cap fell by more than $40 billion.

Netflix said it expected just 2.5 million global paid sub additions in the first quarter compared to the 4 million subs added in the first quarter of 2021. Wall Street had high hopes and anticipated guidance for more than 6 million subscriber additions in Q1.

Variety Intelligence Platform media analyst and correspondent Heidi Chung and VIP media analyst Kevin Tran dig deep into what the long-term picture for Netflix looks like as competition ratchets higher in the streaming wars.

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