| Netflix corporate logo. 2019.1.24/News1 © News1 Correspondent Oh Dae-il |
Major Asian stock markets all started sharply lowered by Netflix’s shock.
As of 9 a.m. on the 21st, Japan’s Nikkei and Australia’s ASX index plunged 1.39% and 1.09%, respectively. On the other hand, Korea’s KOSPI fell only 0.78%, showing relatively good performance.
This is believed to be due to the sharp decline in Nasdaq futures due to the Netflix shock. Netflix announced earnings that fell short of expectations in its earnings report right following the market close on the 20th (local time).
As a result, Netflix’s stock price plunged 20.18% in following-hours trading following closing the regular market down 1.48%.
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| Netflix Daily Stock Trend – Yahoo Finance Capture |
As a result, Nasdaq futures also plummeted. Nasdaq futures are down 0.89% as of 6:30 p.m. on the 20th. This is a bigger drop than the Dow 0.23% and S&P 500 0.48%.
In its earnings report, Netflix expects to add 2.5 million customers in the first quarter of this year. That’s less than half of analysts’ forecast of 5.9 million and lower than the 3.98 million in the same period last year.