Netflix shares plunge more than 20% and drag down Wall Street

The main indices of wall street opened lower on Friday and headed for their third consecutive week of declines, after a weak forecast for Netflix caused the shares of the company to streaming and their peers spiraled down.

At the open, the Industrial Average dow jones it lost 13.70 points, or 0.04%, to 34,701.69 points; the index S&P 500 it fell 11.35 points, or 0.25%, to 4,471.38 units; and the Nasdaq Composite it subtracted 107.80 points, or 0.76%, to 14,046.22 units.

Netflix failed to meet Wall Street forecasts of new subscribers and offered a weaker-than-expected forecast for early 2022 as rivals ignited a feud over TV viewers.

The netflix stock opened with a sharp drop of more than 20% this Friday, a day after the publication of historically low growth forecasts for the platform.

In early trading, the stock was down 21.62% to $398.39.

Stocks of technology and media companies, including waltdisney, ViacomCBS Y rokuwhich have invested heavily in streaming, fell between 4.3% and 5.0 percent.

Seven of the 11 major S&P 500 sectors fell, with communications services down 1.7% to an eight-month low.

Analysts on Thursday expressed doubts about the business prospects of market darlings during the pandemic, including Netflix and Peloton Interactive.

However, shares of Peloton recovered somewhat from the previous day’s decline, gaining 4.2% after its chief executive denied a report that the stationary bike maker was halting some production and raised the revenue forecast for the second quarter.

Other mega-cap growth companies like microsoft, Tesla Y Manzana they will report their quarterly earnings next week.

The online subscription video service expects a net gain of 2.5 million subscribers in the first quarter of 2022, which would represent its most modest growth for the first three months of the year since 2010.

Netflix reported fourth-quarter revenue of $7.71 billion, in line with estimates.

The world’s largest streaming service added 8.3 million customers from October to December, when it launched new programming that included star-studded movies like “Red Notice” Y “Don’t Look Up” and a new season of “The Witcher“.

In the past week, Netflix raised prices in its biggest market, the United States and Canada, where growth is stagnant, analysts say, and it is now looking to expand abroad.

Netflix it picked up more than 36 million customers in 2020 and 18.2 million in 2021. In 2022, the streaming giant’s subscriber growth is expected to level off and return to its pre-pandemic pace, according to analysts.

The company’s upcoming programming includes new deliveries of “Ozarks“, “Bridgerton” Y “stranger thingsand a documentary about kanye-west.

But its competitors, like waltdisney Y hbo maxare pouring billions into creating new shows to grab a piece of the streaming market.

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