Netflix and Facebook Stocks Have Plunge Since November Tech Peak

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In the five months since Nasdaq’s peak late last year, Netflix and Facebook (now Meta Platforms) were crushed, giving up most of the profits they had accumulated over the previous half-decade.

Netflix is ​​down nearly 68% since its Nasdaq peak on November 19, while Facebook has lost more than 45% of its value since and is down more than 50% from its peak two months earlier.

In the recent past, both companies enjoyed unstoppable growth and impregnable track records. Netflix has tied American households to must-watch original content to the point where the company can periodically raise its monthly subscription cost and not miss a beat. And Facebook, with its billions of users and dominant ad targeting engine, has amassed an enviable amount of online advertising revenue.

Those stories unfolded relatively quickly — with investors re-evaluating companies’ prospects amid increased competition and a deteriorating macroeconomic environment.

As of the end of Friday, Netflix had a market capitalization of $99.2 billion, down from more than $300 billion in November. Facebook quickly joined the trillion-dollar club last year but has now dropped to $532.6 billion.

The past week has been particularly bad for Netflix. Stock 35% off on Wednesday, its worst day since 2004, after the streaming company said it lost subscribers for the first time in more than 10 years and expects to lose 2 million more in the current quarter. .

Facebook reports earnings next week. Stocks have been under pressure since its last earnings report in Februaryas the company missed expectations for user numbers and warned of increased competition from video apps like TikTok.

Netflix is ​​at its lowest price since January 2018, while Facebook has not been at this low since April 2020.

Market wide slide on friday as the prospect of rising interest rates spurred a wave of selling. Nasdaq fell 2.6%.

Investors who got involved in Netflix and Facebook a decade ago are still very interested in the matter, but new shareholders are suffering the consequences. Here are the returns on a 10-year, five-year, three-year and one-year basis: