The stock market has once again made crypto look stable compared to Netflix stock price which is down 25% in after-hours trading today..
The news that triggered the dramatic drop was the revelation on Tuesday that the streaming service has lost 200,000 customers in the first quarter of 2022 and projects it will lose another two million subscribers this quarter.. It’s the first time the company has posted a loss in user numbers since 2011, according to Bloomberg.
Investors reacted by dumping NFLX stock in after-hours trading, sending prices plummeting to a new yearly low of $258.90.. On Wednesday at 1:30 pm UTC, it is unclear at what price the shares will open.
This price action has caused some rejoicing in the cryptocurrency community.which has long faced criticism from traditional investors that cryptocurrencies are too volatile.
Crypto analyst and host of the YouTube channel Into the Cryptoverse, benjamin cowen, tweeted today to his 622,000 followers that the Netflix crash reminds him “how stocks became more like cryptocurrencies, rather than the other way around”.
watching $NFLX drop -26% after hours reminds me how stocks became more like #cryptorather than the other way around
— Benjamin Cowen (@intocryptoverse) April 19, 2022
Seeing NFLX drop 26% after hours reminds me of how stocks became more like cryptocurrencies, rather than the other way around.
Netflix stock price has underperformed in 2022 than bitcoin (BTC) has this year. Netflix shares have lost 57% since January 1, 2022, when they were at their peak for the year at $597.37. By comparison, BTC is down 11% overall from its 2022 opening price of $46,319 to $41,288, according to CoinGecko.
Other tech stocks have seen daily losses similar to cryptocurrencies this year. On February 2, PayPal fell 20%, from $172.77 to $139.89. On the same day, Meta Platforms -formerly Facebook- fell 25%, from $327.82 to $244.65.
However, before the cryptocurrency experts get ahead of themselves, It should be noted that bitcoin has fallen harder than those tech stocks during previous crypto market crashes. The last time BTC fell by at least 25% in a single day was on March 12, 2020.when it fell 41% from $7,969 to $4,776.
The analysis conducted by cryptocurrency research firm Into The Block and published on Saturday found what BTC and Ether (ETH) “have been less volatile than many stocks, especially those with crypto offerings”.
The analysis used the Sharpe ratio to compare the volatility of different investments. The lower the score, the less volatile the asset. Bitcoin received a score of -0.02, while Square, at -0.05, and MicroStrategy and Coinbase, at -0.02, matched or beat BTC.
Lower Returns, More Volatility – Contrary to popular belief, $BTC and $ETH have been less volatile than many stocks, especially those with crypto offerings
The Sharpe ratio accounts for returns relative to price volatility. Here, most crypto companies match or underperform BTC pic.twitter.com/sV0QSsCR6J
— IntoTheBlock (@intotheblock) April 15, 2022
Lower returns, more volatility… Contrary to popular belief, BTC and ETH have been less volatile than many stocks, especially those with cryptocurrency offerings. The Sharpe ratio accounts for returns relative to price volatility. Here, most cryptocurrency companies equal or exceed BTC pic.twitter.com/sV0QSsCR6J
Coin Stories podcast host, Natalie Brunell, tweeted today that Netflix could solve some of its current problems by adding BTC to its balance.
Maybe $NFLX should get some #bitcoin content (and BTC on its balance sheet). ♀️
— Natalie Brunell (@natbrunell) April 19, 2022
Maybe NFLX should get some Bitcoin (and BTC on their balance) content. ♀️
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