THE MILESTONE: Netflix’s stock accelerated its descent and reached a 20-month low Tuesday. It closed at $70.45, down 5.4 percent, after sagging to $69 earlier in the session.
THE IMPETUS: There’s growing concerns about the company’s ability to overcome public relations and competitive pressures. A decision to raise $400 million by issuing debt and selling additional stock served as a reminder that Netflix hasn’t been bringing in as much money as management anticipated from an unpopular price increase announced in July.
THE BACKLASH: Netflix’s market value has plunged 75 percent since mid-July. Netflix lost 800,000 subscribers during the July-September period.