Shares of Netflix ( NFLX ) recovered from earlier losses on Monday after the streaming giant’s boxing event between heavyweight champion Mike Tyson and YouTube personality Jake Paul experienced technical glitches during the live broadcast.
The issue has raised concerns about the company’s ability to deliver other types of live programming, especially with the NFL’s Christmas Day games coming up in less than a month.
Customers complained about buffering noise and streaming issues while watching the show late at night. Downdetector, which tracks internet outages, received thousands of outage reports in the evening.
Netflix did not immediately respond to Yahoo Finance’s request for comment.
Since the start of the year, Netflix shares have surged more than 70%, outperforming the broader market and streaming rivals, including Disney ( DIS ) and Comcast ( CMCSA ). Shares rose nearly 2% shortly after the opening bell on Friday.
Bandwidth issues may be at fault: The company announced 60 million households around the world were tuned in to watch but did not address technical issues.
But this isn’t the first time Netflix has faced technical outages from its various live shows, which include comedy specials and reunion tapings. That led to investor concerns the company will not be able to get it right in time for its NFL Christmas Day doubleheader, with the Kansas City Chiefs vs Pittsburgh Steelers and Baltimore Ravens vs Houston Texans.
Many users on the social media platform vented their frustration, clearly mentioning streaming problems and noise at night.
However, Oppenheimer analyst Jason Helfstein dismissed customer complaints, writing in a note to clients on Sunday that he saw the possibility of being twice as large as the company’s internal expectations, “a high-quality problem that could easily be solved on Christmas Day.”
Netflix signed a three-season deal with the NFL earlier this year to broadcast Christmas games, which will be produced by CBS Sports ( PARA ). The streamer is reportedly coughing up $75 million per game, according to the Wall Street Journal.
Worried about glitches? Customers complained that the Jake Paul vs. Mike Tyson stream had problems. (AP Photo/Julio Cortez) ·ASSOCIATED PRESS
Assuming 2.5 viewers per household, Helfstein estimated around 150 million global viewers watched the Tyson-Paul show. This is larger than the 124 million US viewers who watched the 2024 Super Bowl, the highest audience for a US broadcast.
The analyst, who has an Outperform rating on the stock, cited Netflix’s ability to generate massive audiences, “suggesting that the company will be successful with advertising in live events.”
Last week, Netflix said its advertising rate, now two years old, had reached 70 million monthly active users globally, a significant jump from the 40 million users the company revealed at its second Upfront presentation in May.
Note: Monthly active users, otherwise known as MAUs, are not the same as paying customers. The company has not disclosed actual customer numbers for the ad level or how much revenue it has generated so far. MAU can include multiple people using the same account.
Netflix recently beat Wall Street expectations in every major financial metric in its third-quarter results on Oct. 17, with shares rising to record highs as many analysts called Netflix the winner of the struggling streaming war.
Still, the company recently announced that year-over-year engagement rates were nearly flat — a potential headwind when it comes to the company’s ability to raise prices and drive growth.
“With much of our subscriber growth seen as better monetization of our existing (and non-growing) user base, we question whether the momentum can continue into next year,” MoffettNathanson analyst Robert Fishman wrote in a recent note to clients.
Valuation is also a concern, with Fishman adding that Netflix stock is “too expensive for a company whose own guidance shows a decline in revenue into 2025.” Last month, Netflix said its revenue growth is expected to slow from 15% this year to 11% to 13% in 2025.
Alexandra Canal as a Senior Reporter at Yahoo Finance. Follow him in X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
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