April 23 news, the US market technology stocks began to fall sharply after peaking in November last year, of which streaming service company Netflix and social media Facebook parent company Meta shares were hit the hardest.Both stocks have wiped out gains over the past few years.
Since the Nasdaq hit a record high in November last year, Netflix’s market value has fallen by nearly 68%; Meta’s market value has also fallen by more than 45%, down more than 50% from its record high two months ago.
As members of the FAANG stocks that represent the technology industry, Netflix and FMeta have continued to decline recently. Not so long ago, these two companies seemed to be in the limelight. Netflix is so deeply ingrained in American homes that it has must-see original video content for all kinds of users, so much so that the company can regularly raise its monthly subscription fee. Meta’s Facebook, which has billions of users, dominates the market with its advertising business, and its huge online advertising revenue is the envy of other companies.
However, as market competition intensified and the macroeconomic environment changed, investors began to reassess the prospects of both companies, and the situation took a turn for the worse.
As of Friday’s close, Netflix’s market value was $99.2 billion, well below its market value of more than $300 billion in November. Meta briefly reached the trillion-dollar market cap last year, but its total market cap has now fallen to $532.6 billion.
The past week has been particularly bad for Netflix. Shares in the company plunged 35 percent on Wednesday, putting the stock on track for its worst performance since 2004. Netflix previously said that the first quarter of 2022 was the company’s first loss of subscribers in more than a decade, and it expects to lose as many as 2 million subscribers this quarter.
Facebook parent company Meta is also due to report earnings next week. The company’s stock has been under pressure since it released its fourth-quarter 2021 earnings report in February this year. In its fourth-quarter earnings report, Meta said user growth was lower than expected and warned that competition from short-video apps such as TikTok was intensifying.
Netflix stock is currently at its lowest level since January 2018, while Meta stock is at its lowest level since April 2020.
Investors expected higher interest rates, leading to a sell-off in U.S. stocks on Friday, with stock prices broadly down. The Nasdaq fell 2.6%.
Historically, investors who started investing in Netflix and Facebook a decade ago are still making a fortune, but newcomers are losing money. Specifically, the 10-year ROI of Netflix stock is 1321.77%, and the five-year ROI is 50.85%; but the three-year ROI is negative 42.88%, and the one-year ROI is negative 57.64%. Meta stock has a ten-year ROI of 381.56%, a five-year ROI of 28.14%, a three-year ROI of 1.47%, and a one-year ROI of negative 37.91%.
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