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Nasdaq Slips Below 14,000 as Netflix Slump Keeps Tech Under Pressure

Stock MarketsJan 21, 2022 03:43PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com – The Nasdaq slumped Friday, falling below the key 14,000 level, but remained under pressure as a Netflix-led rout in tech weighed on sentiment.

The NASDAQ Composite slumped 2%, though remained above the worst levels of the day. The S&P 500 fell 1.4% and the Dow Jones Industrial Average slipped 1%, or 335 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.

The bleeding in tech was stemmed somewhat by the dip-buying in semiconductor stocks, with Silicon Laboratories (NASDAQ:SLAB), Texas Instruments  (NASDAQ:TXN) and NXP Semiconductors (NASDAQ:NXPI) leading to the upside.

Materials also continued to the broader market slump, paced by an 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 5% as Oppenheimer cut its price target on the stock to $225 from $285, citing a “decline in comparable valuations.”

It wasn’t all red on Wall Street as defensive concerns of the market including consumer staples and utilities found support.

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 13% 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 Slips Below 14,000 as Netflix Slump Keeps Tech Under Pressure
 

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Comments (13)
Robert Garot
Robert Garot Jan 21, 2022 4:20PM ET
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Prepare for a big bottom on Monday
Gennadiy Ryabkin
Gennadiy Ryabkin Jan 21, 2022 4:20PM ET
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And it goes up because already everyone waits the BIG BOTTOM
Chad RicherThanYou
Chad RicherThanYou Jan 21, 2022 4:12PM ET
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Home Prices and 401Ks about to see an epic crash
Robert Garot
Robert Garot Jan 21, 2022 4:12PM ET
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Not homes, crypto
Gennadiy Ryabkin
Gennadiy Ryabkin Jan 21, 2022 4:08PM ET
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Powel we need money, dollars, more dollars, make Netflix great again! Nasdaq goes up and down because of Netflix, lol =)
Travis carlson
Travis carlson Jan 21, 2022 4:08PM ET
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we need a probe on biden
Chad RicherThanYou
Chad RicherThanYou Jan 21, 2022 4:03PM ET
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Welcome to the Bidenflation economy!
Chris Sundo
Chris Sundo Jan 21, 2022 4:02PM ET
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CRASH ON MONDAY
IceIce Baby
IceIceBaby Jan 21, 2022 4:02PM ET
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Isn't it already a crash?
Chris Sundo
Chris Sundo Jan 21, 2022 4:02PM ET
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stop blaming netflix geez
IceIce Baby
IceIceBaby Jan 21, 2022 4:02PM ET
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I understand why Netflix falls. But some value pick what was already undervalued is falling too. Does that little bond % worth it?
Travis carlson
Travis carlson Jan 21, 2022 3:53PM ET
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lmpeach biden, he's a looser
Chris Sundo
Chris Sundo Jan 21, 2022 3:53PM ET
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GOP is even worse
Maks Mars
Maks Mars Jan 21, 2022 3:46PM ET
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Big crash just starting crypto back to the floor lol
Stan Smith
Stan Smith Jan 21, 2022 3:46PM ET
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Yep, the super bubble is starting to burst. Doesn't appear BTC was the hedge it was touted to be either. Probably a ruse to distract investors from the real hedge :-)
Gordon Edgett
Gordon Edgett Jan 21, 2022 3:32PM ET
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And down she goes.
 
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