Shares of major streaming services have on Wednesday traded lower amid negative sentiment in the sector following Netflix’s massive shortfall on subscriber projections for Q1 2022.
The sell-off has seeped across other streaming services stocks, while the Nasdaq Composite has shed Tuesday’s gains and is down 1.1%.
Roku, Disney and Fubotv stocks
Shares of Walt Disney Co (NYSE: DIS), the company behind Hulu, were down 4.8% in the afternoon. The declines bring the company’s stock price to -20%, year-to-date.
Roku Inc (NASDAQ: ROKU) shares were down 5.2%, with the video streaming company’s stock hitting intraday lows of $106.37 for its lowest level since mid-March. Roku is now down nearly 53% YTD.
Fubotv Inc (NYSE: FUBO), a sports-focused streaming platform from Paramount, also fell sharply as investors shirked growth stocks in the streaming sector. The FUBO stock had shed 5.9% at the time of writing.
The Fubotv stock has plunged more than 30% in the past month and could retreat to levels last seen in June 2019 if it continues below $5.00. (It’s currently at $5.24 and has fallen more than 67% year-to-date.
Elsewhere, shares of Warner Bros. Discovery (NASDAQ: WBD) were trading at more than 5% down. The company, which runs HBO Max and Discovery+, was priced at $23.22 having lost nearly 9% in the past month.
Netflix shares continue to tank
Netflix (NASDAQ: NFLX) reported its first-quarter earnings results on Tuesday and reported it lost 200,000 subscribers. The streaming giant, which blamed rising competition and inflation among other reasons for the loss, had projected subscriber growth of 2.5 million over the quarter.
The NFLX stock tanked 25% in post-market trading and has continued to fall on Wednesday. As of early afternoon deals (14:30 ET), the company’s shares are down more than 36%. NFLX is down 41% in the past month and over 63% in the red year-to-date.
According to Bloomberg, Netflix is currently “the worst-performing stock” in 2022 in both major US indexes of S&P 500 and Nasdaq 100.
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