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Netflix Inc plunged 19.6% in premarket trading after the
streaming giant fell short of market forecasts for new
subscribers at the end of last year and offered a downbeat
outlook for early 2022.
Shares of technology and media companies including Walt Disney
Co, ViacomCBS and Roku that have invested heavily in streaming
also fell between 1.7% and 5.4%.
All the three major Wall Street indexes tracked weekly declines,
with the Nasdaq Composite and the S&P 500 set for their worst
week since October 2020. The Nasdaq on Wednesday closed more
than 10% below its all-time high hit in November, confirming it
was in correction territory.
The tech-heavy index has particularly come under pressure after
rising Treasury yields and expectations of a more aggressive
Federal Reserve in controlling inflation hit growth shares.
The central bank's policy meeting next week will offer more
clarity on its fight against surging inflation, after data
earlier this month showed consumer prices rising to its highest
level in four decades in December.
At 7:03 a.m. ET, Dow e-minis were down 68 points, or 0.2%, S&P
500 e-minis were down 20.25 points, or 0.45%, and Nasdaq 100
e-minis were down 120.25 points, or 0.81%.
Analysts also raised doubts about business prospects of pandemic
market favorites including Netflix and Peloton Interactive on
Thursday. However, shares of Peloton recovered somewhat from the
previous day's fall, gaining 6.8%.
The U.S. Senate Judiciary Committee on Thursday approved a bill
that would bar tech giants like Amazon.com from giving
preference to their own businesses on their websites, despite
hefty lobbying from top executives like Apple Chief Executive
Tim Cook.
(Reporting by Shreyashi Sanyal and Bansari Mayur Kamdar in
Bengaluru)
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