Netflix shares plunge more than 35% on lost subscribers

Netflix stocks plunged extra than 35 percent early Wednesday following disappointing consequences, while the Dow drove higher in a mixed open for US shares.

The streaming massive stuck Wall Street off guard for the second sector in a row, reporting a drop in subscribers for the first time in a decade.

The company blamed the quarter-over-quarter erosion on the suspension of its service in Russia due to Moscow’s invasion of Ukraine. The drop in shares was reminiscent of the prior quarter when a weak subscriber outlook sent Netflix shares diving.

Netflix’s plunge especially weighed on the Nasdaq, which was down 0.7 percent at 13,522.73.

About 25 mins into buying and selling, the Dow Jones Industrial Average received 0.5 percent to 35,084.97, whilst the huge-based totally S&P 500 edged up much less than 0.1 percent to 4,464.19.

Analysts said the bargain-searching that drove Tuesday’s rally became still on view on Wednesday, boosted by means of robust results from Dow individuals IBM and Procter & Gamble.

Shares of each business have been higher after IBM’s profits have been boosted via desirable software programs and cloud computing income, at the same time as P&G scored higher earnings amid continued robust demand despite price will increase.