Netflix has lost around $US8 billion in value in the last two days, as shares crashed for the second time on Friday — down 7.6% in addition to the 7.8% it fell during trading yesterday.
The entire stock market has had an ugly two days, with tech and media stocks being hit particularly hard. But Netflix has been getting hammered more thoroughly than most.
On Thursday, media stocks began to fall as Disney and Time Warner were downgraded by analysts from Sanford C. Bernstein, who changed their rating from “outperform” to “market perform.” This is the second time recently a faltering at Disney has turned media stocks downward. Earlier this month, a trouble at ESPN set off a nosedive for major media stocks.
But at the time Netflix had not fallen with its competitors. Now it seems to be leading them in the stock plunge.
Many previously thought Netflix’s stock would not be moved by the woes of cable television, since it contributed to those woes by encouraging cord cutting. But now Netflix is crashing even harder than many traditional media companies.
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