Netflix's stock has fallen significantly in 2022, with its share price dropping 60% since January due to concerns over rising inflation, increased competition, and consumer cutbacks on discretionary spending. The company has also suffered its first subscriber losses in a decade, reporting a decline of 200,000 members in the first quarter of the year. The emergence of new platforms, such as Disney+, HBO Max, and Apple TV+, has severely threatened Netflix's position in the market. To combat this, the company announced in July that it would introduce an ad-supported tier to make its offerings more aligned with its competition. However, the success of this venture is still uncertain. In addition, Netflix has heavily invested in its gaming business throughout the year but has yet to see significant engagement from subscribers.

Netflix has also been experimenting with new content formats. For example, the company recently released an interactive movie called "Black Mirror: Bandersnatch," which allows viewers to make decisions for the characters and shape the outcome of the story. Netflix has also been exploring virtual reality (VR) and augmented reality (AR) technologies, which could potentially revolutionize the way people consume content in the future.

Despite Netflix's efforts to restructure its business, investors remain unconvinced. Bank of America has expressed concerns over the stability of Netflix's projected third-quarter subscriber growth, and Goldman Sachs has reduced its target price to $182, maintaining a sell rating. The success of Netflix's ad-supported membership is also a matter of speculation, with some analysts predicting the company could earn $3.6 billion in revenue from the offering, while others remain unconvinced.

Given the uncertain future of Netflix's recent changes, it may be best to hold off on investing in the company until the impact of its restructuring becomes more apparent.

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