Five-year performance of Meta and Netflix
Two members of the FAANG group were detoxified.
In the five months since the Nasdaq topped late last year, Netflix and Facebook (now Meta) have come under pressure, giving up most of the gains they’ve accumulated over the previous half decade.
Netflix is down almost 68% since the Nasdaq peaked on Nov. 19. Facebook has since lost over 45% of its value and is down more than 50% from its high two months earlier.
In the recent past, both companies seemed to have unstoppable growth and impenetrable rifts. Netflix was so embedded in American homes and had so much original content that the company could regularly increase its monthly subscription costs and never miss a beat. Facebook, with its billions of users and dominant ad targeting engine, was sucking up more and more online advertising revenue.
Stories quickly turned and investors reassessed the companies’ prospects amid increased competition and a deteriorating macroeconomic environment.
As of Friday’s close, Netflix had a market cap of $99.2 billion, compared to over $300 billion in November. Facebook briefly joined the trillion dollar club last year and is now down to $532.6 billion.
The past week has been particularly bad for Netflix. The stock plunged 35% on Wednesday, its worst day since 2004, after the streaming company said it lost subscribers for the first time in more than 10 years and expects to lose as many as 2 million more in the current quarter .
Facebook reports earnings next week. The stock has been under pressure since its last earnings report in February, when the company missed user expectations and warned of increasing competition from video apps like TikTok.
Netflix is at its lowest price since January 2018, while Facebook hasn’t been this low since April 2020.
Markets largely slid on Friday as the prospect of rising interest rates prompted a sell-off. The Nasdaq fell 2.6%.
Investors who got into Netflix and Facebook a decade ago are still solidly in the green, but newer shareholders are suffering. Here are the returns on a 10, 5, 3 and 1 year basis:
- ten years: +1321.77%
- 5 years: +50.85%
- 3 years: -42.88%
- 1 year:– -57.64%
https://www.cnbc.com/2022/04/22/netflix-and-facebook-stock-have-plunged-since-techs-november-peak.html Netflix and Facebook shares have plummeted since the November high