Netflix sank 36% to $223.9, its lowest level since January 2018. If it closes like this, it will be its worst day since October 2004.
The plunge in shares could erase the gain of the past two years, when his business boomed as new customers joined his platform to weather lockdowns.
“Netflix is an example of what happens to growth companies when they lose their growth,” said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.
What worried investors the most is his projection that he will lose about 2 million by the second quarter. What happened with Netflix gave a preventive blow to Disney, Warner Bros Discovery (which wake up losing more than 4%) and Roku, which gives up more than 7%, according to the e-Toro platform.
Netflix’s results stoked investor fears over their bets on high-growth companies about to report, dragging down the Nasdaq, which was down about 1%.
Mega-cap stocks that also have streaming, like Amazon.com and Apple, don’t seem as affected – down less than 2% – given the strength of their businesses elsewhere, but we’ll have to wait for their reports, e-Toro warned.