Wall Street Opens Lower as Netflix Shock Dents Growth Narratives; Dow Down 50 Pts By Investing.com

© Reuters.

By Geoffrey Smith

Investing.com – US stock markets opened lower on Wednesday with technology stocks underperforming after a disappointingly weak quarter from Netflix (NASDAQ 🙂 shaken some complacency from the confidence in growth-oriented tech stocks.

Netflix said its subscriber growth in the first quarter was well below estimates at 4 million, and said it expects to slow down to just 1 million in the second quarter as the pandemic fuel surge in new customers fades.

The 0.4% fell to a two-week low. The price did slightly better, rising 53 points, or 0.2%, to 33,875 points. The decrease was down 0.2%.

Tesla (NASDAQ 🙂 was one of the stocks to indirectly suffer from Netflix’s impact. The assumptions of rapid growth as far as the eye can see have been challenged this week by suggestions that Beijing could block its sales in China, after a carefully organized ‘viral’ protest against its alleged lack of quality in a car salon. The stock fell 2.2%.

Netflix was one of the undisputed winners of the pandemic, which accelerated a secular trend toward streaming (which the company said last night was still intact) and closed many other forms of entertainment. Other stocks that benefited from similar trends in their sectors also weakened Wednesday on worries that what the given pandemic will bring about through economic reopening. Peloton Interactive (NASDAQ 🙂 stock, under pressure this week due to a dispute with regulators about product security, fell another 3.0%.

Verizon’s (NYSE 🙂 stock was another to have its growth estimates reassessed after a quarter where it lost more mobile customers than analysts expected, further indication that the merger of Sprint and T-Mobile was seriously affected on its competitive position. The stock fell 0.1%.

Halliburton (NYSE :), Baker Hughes Stocks (NYSE 🙂 and Nextera Energy (NYSE 🙂 all also fell after disappointing quarterly updates, the oilfield services companies fell 5% and to a two-month minimum, and from 1.6% to a four-month minimum, in the respectively, while the renewable expert fell 2.0%.

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