Muristek
The Netflix logo is pictured on a television in this illustration photograph taken in Encinitas, California January 18, 2017. — Reuters pic
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
NEW YORK, April 20 — Netflix shares plunged more than 35 per cent early today following disappointing results, while the Dow pushed higher in a mixed open for US stocks.
The streaming giant caught Wall Street off guard for the second quarter in a row, reporting a drop in subscribers for the first time in a decade.
The company blamed the quarter-over-quarter erosion to suspension of its service in Russia due to Moscow’s invasion of Ukraine. The drop in shares was reminiscent of the prior quarter, when a weak subscriber outlook sent Netflix shares diving.
Netflix’ plunge especially weighed on the Nasdaq, which was down 0.7 per cent at 13,522.73.
About 25 minutes into trading, the Dow Jones Industrial Average gained 0.5 per cent to 35,084.97, while the broad-based S&P 500 edged up less than 0.1 per cent to 4,464.19.
Analysts said the bargain-hunting that drove yesterday’s rally was still on view today, boosted by strong results from Dow members IBM and Procter & Gamble.
Shares of both companies were higher after IBM profits were boosted by good software and cloud computing sales, while P&G scored higher profits amid continued strong demand despite price increases. — AFP