Markets once punished Netflix for being too far ahead of the curve. Falling behind now results in a similar penalty.
The streaming giant’s share price slumped more than 35% on Wednesday morning following disappointing first-quarter results that included the company’s first drop in paid subscribers in more than a decade. . That puts stocks in line for their biggest one-day sale in nearly 18 years, according to FactSet. Netflix has also lost around 68% of its market value since peaking in mid-November, reflecting the subsequent sell-off as part of the infamous Qwikster debacle in 2011 when Netflix announced plans to separate its streaming service from a renamed DVD-by. -mail service. This plan ultimately resulted in Netflix losing around 78% of its market value before the company reversed the move at the end of the year.