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Nasdaq Ends Worst Week Since Pandemic Onset as Netflix Leads Tech Rout

Stock MarketsJan 21, 2022 04:20PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com – The Nasdaq slumped below the 14,000 level Friday, suffering its worst weekly loss since March 2020 as sentiment on tech was further soured by a slump in Netflix following disappointing quarterly results.

The NASDAQ Composite slumped 2.7%, taking its weekly losses to about 7.5%. The S&P 500 fell 1.9% and the Dow Jones Industrial Average slipped 1.3%, or 450 points.

Sentiment on tech was hurt as Netflix (NASDAQ:NFLX) kicked off the start of quarterly earnings for big tech with disappointing guidance that sent its shares plummeting about 22%.

Netflix reported earnings that topped expectations, and revenue that was in-line, but its fiscal first quarter forecast for subscriber growth fell short of estimates, raising worries about peaking growth in the U.S. and Canada.

“Netflix’s first mover advantage and large subscriber base provides the company with a nearly insurmountable competitive advantage over its streaming peers. However, Netflix appears to have hit a ceiling on subscribers in UCAN,” Wedbush said in a note after reiterating its underperform rating and $342 on the stock.

The slump in Netflix sent shockwaves across media stocks. ViacomCBS (NASDAQ:VIAC), Walt Disney (NYSE:DIS) and Discovery (NASDAQ:DISCA) were under pressure.

Semiconductor stocks fell 1.7%, but dip-buying was seen in Texas Instruments (NASDAQ:TXN) and NXP Semiconductors (NASDAQ:NXPI) ending the day in the green.

Materials also added to the broader market slump, paced by a more than 8% dip in Ecolab (NYSE:ECL) after the company cut its fourth quarter guidance following the impact of ongoing supply chain disruptions.  

Amazon.com (NASDAQ:AMZN), Tesla (NASDAQ:TSLA), and Etsy (NASDAQ:ETSY) were the biggest drag on the consumer discretionary sector.

Etsy Inc (NASDAQ:ETSY) fell more than 6% as Oppenheimer cut its price target on the stock to $225 from $285, citing a “decline in comparable valuations.”

Consumer staples - a defensive concern of the market - was the sole sector to end the day above the flatline. 

The broader market move lower coincided with a bolt of volatility that could be exacerbated by the expiring of single stock options totaling about $1.28 trillion later on Friday.

In other news, Peloton Interactive (NASDAQ:PTON) jumped 11% following a rout a day earlier after the company pre-reported higher revenue for fiscal Q2 of $1.14 billion, up from $1.06 billion a year ago.

Nasdaq Ends Worst Week Since Pandemic Onset as Netflix Leads Tech Rout
 

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Comments (16)
Victor Yakov
Victor Yakov Jan 21, 2022 9:10PM ET
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i lost 200 k in the last 3 months
Bobby Armstrong
Bobby Armstrong Jan 21, 2022 9:10PM ET
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Welcome to the NFL
ady Lau
ady Lau Jan 21, 2022 9:10PM ET
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I close all MY positions in 19th Jan
ady Lau
ady Lau Jan 21, 2022 9:10PM ET
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now bear really is coming
Mitchel Pioneer
Mitchel Pioneer Jan 21, 2022 9:06PM ET
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What on earth is going on with the biggest investment JOKE in the world?
Adam Paine
Adam Paine Jan 21, 2022 8:44PM ET
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I hate to say it but, this is just the beginning. p/e is way high still on most stock prices. QE pullback and interest rate hikes have not been prices in even at these levels. take your profits while you still can IMO
Victor Yakov
Victor Yakov Jan 21, 2022 8:44PM ET
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What about the pandemic hit stocks like cruises and airlines - dump them too?
Jenn foster
Jenn foster Jan 21, 2022 8:44PM ET
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70% of stocks are at 52 weeks lows....its not just about the big names
Don John
Don John Jan 21, 2022 8:44PM ET
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How long will the sell off last? Is there a buy point foreseen?
John Lakran
John Lakran Jan 21, 2022 8:25PM ET
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? head scratcher but I know my stocks will come back in the future so sipping pretty
Louis Lipps
Louis Lipps Jan 21, 2022 8:25PM ET
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Can't be "sipping" too pretty my man.  Long way down from here.
Famakinde Lomi
Famakinde Lomi Jan 21, 2022 8:25PM ET
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Louis Lipps don't underestimate the power of FOMC
George Jetson
George Jetson Jan 21, 2022 7:27PM ET
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Obummer 2.0
Marco cuevas
Marco cuevas Jan 21, 2022 6:34PM ET
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Well what do you know looks like rich people don't like to make money...enjoy doing your taxes in 2022  the government appreciates your contribution.
Stan Smith
Stan Smith Jan 21, 2022 6:27PM ET
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Worst Week Since Pandemic?? Markets Scream 'Panic' To Powell As 2022's Tech-Wreck Is Worst In Over 30 YEARS. Now about that tapering nonsense...
RAMAKRISHNA RAO VENGALA
RAMAKRISHNA RAO VENGALA Jan 21, 2022 5:43PM ET
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The fundamentals and the Q3 results of the Indian companies are very good. Even then falling more than US stocks.
Rob Omes
Rob Omes Jan 21, 2022 5:18PM ET
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To explain stars form message before. I will explain... kcuf eht tahw (read from other side)
Rob Omes
Rob Omes Jan 21, 2022 5:15PM ET
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It is just a company providing some television. *******is this world about?
Bradley Jeko
Bradley Jeko Jan 21, 2022 5:15PM ET
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It’s not just a TV stock. It’s a FAANG component. FAANG composes like 20 or 25% of the index, due to the market cap weighting of the index. Considering they account for so much of the value of the index, it’s a big deal.
 
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