Home / World News / Netflix stocks fall 8.5 per cent to $362 in worst week since 2016

Netflix stocks fall 8.5 per cent to $362 in worst week since 2016

Netflix fell as low as $344 on Tuesday after the streaming-video company's forecast for subscriber growth trailed analysts' estimates.

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Netflix plans to spend $8 billion on content next year, the company has said. Disney spent $13.5 billion on content in fiscal 2017, about half of it on sports programming

Richard Richtmyer | Bloomberg

Last Updated : Jul 22 2018 | 11:21 AM IST

A four-day slump in Netflix after disappointing second-quarter earnings has pushed the shares below one key support level and left them testing a second.

Netflix fell as low as $344 on Tuesday after the streaming-video company’s forecast for subscriber growth trailed analysts’ estimates. That was a hair’s breadth from their 100-day moving average, a level they’ve mostly remained above for the better part of two years.

The stock swung between gains and losses Friday but never broke above the 50-day moving average, which has been a support level throughout the on-again, off-again market rebound from this year’s correction. It closed below that line Thursday for the first time since April.

Netflix, which touched a record high of $423.21 in late June, has fallen 8.5 per cent this week and is on track for its biggest weekly decline in two years. The shares were selling for $362.49 in Friday afternoon trading.