Netflix is the recent catalyst in the sharp fall of Nasdaq value. The reason is a drop in its subscribers' strength. A similar poor performance is being witnessed with other streaming giants including Roku.
It was the largest one-day drop for Netflix in more than a decade by 35.1 percent following the company's statement of blame to inflation, Russia's invasion of Ukraine and a couple of more such unpredictable and uncontrollable obstacles.
The effects of ripple were felt by financial tech giants and those companies whose performances increased significantly during the COVID-19 pandemic period in 2020 and 2021. A drop of 5.5 percent was witnessed with the Warner Bros Discovery and Walt Disney streaming services fell similarly. The shares of Zoom, Peloton Interactive and Doordash dropped heavily and up to 11.3 percent.
Similarly,SoFi Technologies Inc suffered a decline of 6.2 percent and PayPal dropped 8.5 percent. The fall of Marqeta shares was 5.6 percent.
Glenmede chief investment officer Jason Pride said if the profits reach to a great height, it becomes tough for companies to achieve the same growth again. The market will take some time to comprehend.
Until now, in 2022, the Nasdaq has witnessed a drop of about 14 percent and the S&P 500 has fallen by 6.4 percent. The struggling sectors have been the tech shares.
However, the earnings season is strong initially and 80 percent of the sixty S&P 500 companies have reported profits beyond expectations. The DJIA has witnessed 0.71 percent growth and the Nasdaq Composite 1.22 percent.
Even though investors started losing confidence in the market initially this year and in the wake of the Russian-Ukraine war that started on February 24, the market is now showing some positive results and signs of complete recovery are on the card. It is believed that 2022 will end on a good note.