Netflix stocks have dropped 0.77 percent to $107.06 on Wednesday's trading despite reporting impressive subscriber additions in the fourth quarter of 2015, according to The Street.
The relatively steep drop in the company's stocks seems to have been caused by a massive tailspin on U.S. stocks, as the market struggles to stay afloat amid a weakening global economy.
Barclays analyst Paul Vogel stated that in this regard, Netflix's strong performance in the fourth quarter was actually the very reason for its drop during Wednesday's trading, reported Reuters.
"People are just taking this opportunity to sell a stock that has been a winner for a long time," he said.
Apart from this, analysts also believe that Netflix's relatively slow local growth has affected the slump in the company's shares. In the fourth quarter of 2015, domestic subscriptions only increased by 1.56 million, falling short of estimates, which predicted a 1.65 million subscriber increase.
The company's international growth, however, is a completely different story. Netflix was able to gain 5.6 million new subscribers in its fourth quarter report. Among that number, 4 million came from territories outside the U.S., according to Investor Place News.
With local growth seemingly reaching a plateau, Netflix has set its sights on the international market, expanding to more than 100 countries within the year.
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