Summary List Placement
US stocks fell on Wednesday as weaker-than-expected earnings from Netflix weighed on tech.
The video-streaming company said it expects the slowest quarter of subscriber growth in history.
The company’s slowing growth as the pandemic recedes could be emblematic of the tech sector going forward.
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US stocks declined on Wednesday as Netflix’s weaker-than-expected earnings results weighed on the technology sector.
The streaming company fell 8% in Wednesday morning trades after forecasting the second quarter to be its slowest period of subscriber growth in history. The company saw a surge in business amid the COVID-19 pandemic as people spent more time at home, but now that trend is reversing as the pandemic begins to recede.
Investors are likely viewing Netflix’s pandemic-pull-forward of demand and subsequent slow-down as emblematic of the tech sector as a whole, given that many of the tech companies that enabled a work-from-home environment will likely see slower growth as the physical economy begins to reopen.
Here’s where US indexes stood at the 9:30 a.m. ET open on Wednesday:
S&P 500: 4,128.70, down 0.15%
Dow Jones industrial average: 33,794.45, down 0.08% (26.85 points)
Nasdaq composite: 13,737.14, down 0.36%
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Source:: Business Insider