News Tech: The tech-heavy Nasdaq fell on Wednesday as streaming giant Netflix`s first drop in subscribers in a decade shook investor confidence in other high-growth companies, fearful they may face similar post-pandemic performance issues. Positive earnings from consumer giant Procter & Gamble and IT firm IBM Corp provided momentum though to the other Wall Street benchmarks, with the blue-chip Dow topping 1% in early-afternoon trading and the S&P 500 trading flat.
Netflix Inc plunged 36.6%, set for its worst day since October 2004, after it blamed inflation, the Ukraine war and fierce competition for the subscriber decline and predicted deeper losses ahead. Streaming peers Walt Disney, Roku and Warner Bros Discovery all dropped more than 5%, while megacap stocks such as Amazon.com Inc, Alphabet Inc and Meta Platforms Inc declined 1.5% to 7.9%.
“But the rest of the market space, the more value-oriented and small-cap oriented industries, are holding up better than the technology sector.” The Nasdaq has fallen 13.9% so far this year and his benchmark S&P 500 has fallen 6.4%. The telecommunications services sector fell 4.1% on Wednesday, even though he rose in eight of the S&P 500’s 11 major sectors.