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Netflix Share Price ($) Source: Yahoo 450 400 350 300 250 200 150 100 our 50 0 01/05/2002 01/12/2002 EOOZ/Lo/to DOOZ/Z/10 DOOZ/60/10 01/04/2005 01/01/2005 03/06/2006

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Netflix Share Price ($) Source: Yahoo 450 400 350 300 250 200 150 100 our 50 0 01/05/2002 01/12/2002 EOOZ/Lo/to DOOZ/Z/10 DOOZ/60/10 01/04/2005 01/01/2005 03/06/2006 01/01/2007 01/08/2007 01/03/2008 SO02/01/10 600Z/SO/TO 600Z/Zt/to OTOZ/L/TO 01/02/2011 LLOZ/60/10 01/04/2012 01/11/2012 01/06/2013 DIOZ/TOTO STOZ/80/10 STOZ/EO/TO stOZ/ot/10 910Z/SO/10 9T0Z/ZT/LO LTOZ/20/to BIOZ/z/to (a) Displayed above is stock price data for US company Netflix, an online video streaming service. The circled portion in the graph includes the summer of 2018. In the summer of 2018, Netflix announced that it had added 670,000 new domestic subscribers and 4.5 international subscribers to its service. This is in addition to the 125 million subscribers it already had at the time. However, at one point in the summer of 2018. Netflix stock fell by 14 percent in after-hours trading. Discuss why a large increase in the total number of subscribers would translate into a 14 percent stock price decline. Please support your answers with any relevant calculations, and provide any citations at the end of your assessment report

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