Netflix is sliding after receiving its first-ever Oscar nomination for best picture

  • Netflix received a best-picture Oscar nomination for the black-and-white drama “Roma.” It was the streaming giant’s first nomination for best picture.
  • Despite the announcement, shares of Netflix slid nearly 3%, underperforming the broader market.
  • Watch Netflix trade live here.

Netflix shares fell more than 3% Tuesday after the streaming platform received its first best-picture Oscar nomination for its black-and-white drama “Roma.”

The film drew other nominations across categories. Roma’s director, Alfonso Cuaron, earned a nomination for best director; Yalitza Aparicio was nominated for best actress, and Roma was nominated for best foreign language film.

Last week, shares fell after the company reported fourth-quarter results. Quarterly sales fell slightly short of analysts’ expectations, though the streaming giant beat out estimates for both earnings and global paid-net-subscriber additions. Following the results, a handful of Wall Street firms, including Goldman Sachs and Morgan Stanley, raised their price targets on the name and reiterated their optimistic view of the company.

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Ahead of earnings, however, Wall Street analysts largely touted splashy Netflix titles other than “Roma,” like “Bird Box” and “Bandersnatch,” as a reason to be optimistic on the streaming platform – and the new subscribers the big names may have drawn late in the year.

JP Morgan analysts, for example, in a note ahead of earnings highlighted Google Trends showing “Bird Box” became the second-most-searched Netflix original title behind “Stranger Things.”

Netflix was trading near $US328.50 a share on Tuesday. It was up more than 27% this year.

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Netflix shares.
Netflix shares. Markets Insider