Netflix's stock has plummeted 35% after the company disclosed a dramatic decrease in members and warned that millions more are about to abandon the streaming service.
It slashed the company's market worth by more than $50 billion, and analysts said it would be difficult to get back on track.
Netflix is up against stiff competition from streaming competitors, but it was also hurt by raising pricing and exiting Russia.
However, others have questioned the company's ambitions to promote growth, which include introducing a free ad-supported service.
It also intends to tighten down on password sharing, predicting that over 100 million non-paying households utilise this method to access the site.
One of America's most well-known investors, William Ackman, pulled his $1.1 billion stake in a hint of the concern.