Tech stocks closed down across the board today following Netflix’s (NASDAQ:NFLX) disappointing first-quarter earnings report. So what do you need to know?
Well, on Tuesday after market close, Netflix reported its financial results for Q1, and it wasn’t pretty. Netflix managed to miss even bearish estimates, announcing a loss of 200,000 subscribers in its first quarter. For context, despite a reportedly slow start to the year, analysts still expected the company to add 2.8 million users. This marked the first net subscriber loss for the streaming company since 2011. Additionally, the company shared that it expects to lose an additional 2 million subscribers in Q2.
Netflix’s earnings plunge has dragged the whole market today, especially the tech-heavy Nasdaq Composite. Companies like Spotify (NYSE:SPOT), Shopify (NYSE:SHOP) and Tesla (NASDAQ:TSLA) closed down, while the Nasdaq dropped 1.2%. Netflix itself shed 35%, wiping off $50 billion in market capitalization.
Tech Stocks Sink on Netflix Earnings Flop
Netflix has had a ripple effect across the markets. Even Tesla couldn’t avoid the bears today, despite excitement and speculation ahead of its after-hours earnings call.
Aside from Netflix, Shopify appears to be one of the greatest secondary casualties, dropping more than 13% to close Wednesday. With that said, the company has been in something of a downward spiral since November. The Netflix-induced tech crash likely accelerated the e-commerce giant’s bearish trend.
Roblox (NYSE:RBLX) also was a big loser, with RBLX stock closing down about 12.5%. Joining it in metaverse mayhem was Meta Platforms (NASDAQ:FB), formerly known as Facebook, which closed down about 8% today.
Finally, it appears even music streaming companies are suffering today, as Spotify (NYSE:SPOT) close down roughly 11%.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.