Shares of Netflix and Facebook have tumbled since the tech peak in November

Five-year performance of Meta and Netflix

CNBC

Two members of the FAANG group have been cleared of mud.

In the five months since the Nasdaq peak at the end of last year, Netflix Other Facebook (now Meta) were crushed, giving up most of the gains they had accumulated over the previous half decade.

Netflix is ​​down nearly 68% since the Nasdaq peak on November 19. Facebook has lost more than 45% of its value since that time and is down more than 50% from its two-month high.

In the recent past, both companies appeared to have unstoppable growth and impenetrable ditches. Netflix was so ingrained in American families and had so much original content that the company could periodically raise its monthly subscription cost and not miss a beat. Facebook, with its billions of users and the dominant advertising targeting engine, was absorbing an increasing amount of online advertising revenue.

Stories changed rapidly as investors reassessed companies’ prospects in the face of increased competition and a deteriorating macroeconomic environment.

As of Friday’s close, Netflix had a market cap of $ 99.2 billion, down from more than $ 300 billion in November. Facebook briefly joined the trillion dollar club last year and has now dropped to $ 532.6 billion.

The past week was particularly bad for Netflix. the escort collapsed by 35% Wednesday, the 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 up to 2 million more in the current quarter.

Facebook reports earnings next week. The stock has been under pressure ever since its latest earnings report in Februarywhen the company missed expectations on user numbers and warned of increased competition from video apps like TikTok.

Netflix is ​​at its lowest price since January 2018, while Facebook hasn’t been that low since April 2020.

Markets widely slipped on Friday as the prospect of rising interest rates spurred a wave of sales. The Nasdaq fell 2.6%.

Investors who joined Netflix and Facebook ten years ago are still firmly in the green, but new shareholders are suffering. Here are the returns on a ten-year, five-year, three-year and annual basis:

Netflix

  • 10 years: + 1321.77%
  • 5 years: + 50.85%
  • 3 years: -42.88%
  • 1 years:– -57.64%

A half

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