Site menu

Search by ticker code:
Generic filters


Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

US stock market report – Netflix shares crater 35% after losing 200,000 subscribers

US stock markets were mixed overnight with the Dow Jones gaining 0.7% as old fashioned defensive companies delivered whilst the S&P 500 was flat and the Nasdaq fell by 1.2%.

Netflix share price whacked

The biggest driver was a cratering in Netflix (NASDAQ: NFLX) shares, which dropped more than 35% in a single session following a disappointing earnings update.

The group announced that net subscriber numbers had fallen by 200,000, well short of the forecasted 2.5 million net additions, although it includes the loss of 700,000 subscribers in Russia where services have been suspended.

This is the first time Netflix has lost subscribers in more than a decade, and the company is expecting to lose 2 million net subscribers in the June quarter.

Management are planning a crackdown on account sharing, with the company estimating that 100 million households are sharing their Netflix password with other family or friends.

Netflix’s selloff reverberated around the market, with other streaming services including Disney (NYSE: DIS) and Discovery (NASDAQ: WBD) both down more than 5%.

P&G and IBM report

Proctor & Gamble (NYSE: PG) and IBM (NYSE: IBM) were standouts, with the Dow stalwarts delivering better than expected updates.

PG’s profit was only slightly higher but management raised sales expectations to between 4% and 5%in 2023 as demand for healthcare products remains strong. Shares closed the session more than 2% higher.

IBM delivered a similar result with revenue up slightly, earnings down but strong improvement in its software revenue, up 12%, and consulting revenue, 13%, following its focus on cloud computing and data centres. The IBM share price jumped 7.1% on the news.

Elsewhere, US home sales fell by 2.7% in March as new borrowing costs and inflation hits consumer pockets.

Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is tipped to open higher this morning. For a round-up of the latest news, check out my ASX 200 morning report.

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Disclosure: At the time of publishing, Drew owns shares in Disney.

Powered by

Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

Skip to content