Netflix stock, which went into today’s Nasdaq session already down 16% in 2022 to date, is getting blitzed in mid-day trading.Midway through the trading day, the stock had managed to crawl back above $400 from a session low of $380 but was still down a remarkable 20%.
Trading volume was more than 10 times normal levels.The rout followed a fourth-quarter earnings report that disappointed many Wall Street analysts and investors and triggered a larger debate about the outlook for streaming.
While the company missed its fourth-quarter target for subscribers by just 200,000 (8.3 million additions vs. the expected 8.5 million), its weak guidance for the current quarter set off alarms.
During their quarterly earnings interview, top executives could not identify any one cause for the slowdown in subscriber growth, instead reiterating confidence in the company’s overall trajectory. “For now, we are just staying calm,” Co-CEO Reed Hastings said.Analysts were anything but calm.
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