On Tuesday, the crypto market looked good compared to Netflix (NFLX). Shares of the world’s leading streaming company fell 27% to $ 256 in after-hours trading, reaching 2019 levels. announcing a huge loss of 200,000 subscribers in the first quarter of 2022. This led to a loss of approximately $ 40 billion in half an hour.
This is the first time the company has lost customers since 2011 and is expected to lose another 2 million in the current second quarter. The NFLX is already 63% down from its all-time high and over 40% this year.
“For those wondering how long a miss like this can sting: A reminder of that $ FB is still down ~ 33% since revealing that Facebook’s user growth has reached the ceiling “, Bloomberg’s Brian Chappatta noticed.
Said analyst Michael Nathanson of MoffettNathanson LLC Bloomberg “It’s just shocking,” adding: “Everything they’ve tried to convince me of in the last five years has given up in a quarter.” It’s so frivolous. “
Will Crypto track?
The news site further reported that “Disney fell as much as 5.2% in extended trading after Netflix released its outlook, while Warner Bros. Discovery Inc., owner of HBO Max, fell as much as 2.8%. Shares of Roku Inc., a manufacturer of set-top box streaming devices, fell by as much as 8.3%. ”
Many wondered if this could pull off the crypto market as well. The economist noted that the last time such a harsh shed happened to Netflix (January 22, 2022), “it triggered [an over] 30% 4-day cryptocurrency crash. ” However, he added that he did not think it would be a problem this time. “It’s an idiosyncratic event now.”
The reason why many do not think this scenario will happen again is that the previous case was largely related to macroeconomics – the general stock market sell-off due to fears of rising US interest rates – while this time the indicator appears to be specific to declining demand. companies.
Back in January, the company admitted that competition “affects marginal growth”. Now, in addition to growing competition, they have stated that the poor performance in Q1 is partly due to the large number of users sharing their passwords, estimating 100 million households that technically use the service for free.
They also highlighted macro factors, “including slow economic growth, rising inflation, geopolitical events such as the Russian invasion of Ukraine, and some ongoing disruptions caused by COVID that also have an impact.”
Netflix completely missed their 2.5 million subscriber growth forecast, as did Wall Street’s estimate, which also expected to add as many users in the first quarter of 2022.
In contrast, anti-crypto propaganda, which he calls “too unstable” and “too risky”, claiming that investors need protection from it, today looks weak and pale.
Stock traders realize that technology can fall just as fast #Crypto I can.
My condolences, Netflix investors. $ NFLX
– Michaël van de Poppe (@CryptoMichNL) April 19, 2022
On or about January 27, after the first major drop in Netflix in a year, Bill Ackman reported that his hedge fund had bought more than 3.1 million shares of the company. That makes his pthe position is currently falling 387.5M.
“Someone always knows”
Another big thing that contradicts cryptocurrency is that the industry is often called a fraud scheme, but for some analysts this NFLX scenario gives signs of insider trading.
Twitter account Unusual Whales noticed yes „tit was the most active hot chain before closing ”. $ NFLX with $ 300. “And the shops on the top floor were in a bearish trend.” This means that traders with put options probably made a lot of money. Which sounds like they knew something was going to happen.
Similarly, the bill also states that “The merchant took a huge $ NFLX put position, buy + 100k for ~ $ 2 ask 7 days ago. The position had 4,500 volumes that day, 41 volumes the day before, which expired in a month. Probably made 1000%. ”