Wallstreet Dumps Netflix Shares

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Wallstreet Dumps Netflix Shares

Wall Street Dumps Netflix Shares

Following the report of a loss of a significant subscriber base for the first time in about a decade time, the shares of Netflix tumbled steeply by 37 percent. Investors faced another blow when Wall Street reciprocated by abandoning the company amid doubt about whether it will help the growth stock valuations any further.

Netflix stock was at a peak in late 2021 when its market cap crossed $300 billion. The current capitalization is just about $100 billion. It is now the smallest among the FAANG group, which is Facebook, Apple, Amazon and Google. These five companies fueled the rally of Wall Street before the pandemic.

The second-lowest in the group is Facebook, which is now under the newly named company Meta Platforms. It is worth $550 billion after a drop in stock value by 7 percent. It is evident that investors are dumping such companies which turned into winners during the pandemic due to stay-at-home culture.

Bianco Research president Jim Bianco said they will be observing the market for a certain period and try to recognize whether Roku, Disney, Paramount, Hulu and Netflix could be counted as growth companies henceforth.

The stock of Walt Disney dropped 5.8 percent while that of Paramount Global fell 8.1 percent. Similarly, Roku performed poorly and its stock value lost 5.8 percent and Warner Bros Discovery too witnessed a significant drop of 5.2 percent.

Walt Disney introduced its streaming services in 2019 and this helped its stock price to jump high immediately. It was in a winning position during the COVID-19 pandemic when people were forced to stay at home due to lockdowns and shutdowns across the world. However, its stock has lost value lately and is trading at levels of pre-Disney+ days.

Meanwhile, the streaming services have suffered a loss of subscribers due to the war between Russia and Ukraine. Most service providers have stopped their services in Russia.

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