Netflix stock dips after "Arrested Development" gets negative reviews

The company's shares suffered their largest one-day drop in the last 6 months


Prachi Gupta
May 29, 2013 7:35PM (UTC)

The swelling excitement around the return of cult comedy "Arrested Development" deflated on Sunday, as viewers tuned into a show largely devoid of the "lightning-fast pace" of jokes and robust of characters that made the original comedy so memorable. Hitfix called the episodes "herky-jerky and awkward" while the A.V. Club stated that the fourth season "has major issues." The New York Times proclaimed that the Internet "has killed 'Arrested Development.'"

Netflix stock is now reflecting the disappointment, as shares tanked by more than 6.3 percent when markets closed on Tuesday, reports the AP. The company lost $14.55 a share throughout Tuesday -- its biggest one-day drop in six months -- ending the day at $214.19.

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Given that Netflix is just beginning its foray into original content ("Arrested Development" being its third original television series) the stock dip raises concerns about the risks associated with the new venture. These concerns, however, may be premature, as the AP notes:

IDC analyst Greg Ireland characterized Tuesday’s sell-off as an overreaction, given that it’s far too early to know whether Netflix’s latest high-profile foray into original programming will turn out to be a hit or a flop for the company. That determination probably won’t be made until late July, when Netflix Inc. typically announces the number of subscribers it added during the April-June period.


Prachi Gupta

Prachi Gupta is an Assistant News Editor for Salon, focusing on pop culture. Follow her on Twitter at @prachigu or email her at pgupta@salon.com.

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