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Netflix shares plunged more than 35 percent early Wednesday following disappointing results, while the Dow pushed higher in a mixed open for US stocks.
The streaming giant caught Wall Street off guard for the second quarter in a row, reporting a drop in subscribers for the first time in a decade.
The company blamed the quarter-over-quarter erosion to 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‘ plunge especially weighed on the Nasdaq, which was down 0.7 percent at 13,522.73.
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About 25 minutes into trading, the Dow Jones Industrial Average gained 0.5 percent to 35,084.97, while the broad-based S&P 500 edged up less than 0.1 percent to 4,464.19.
Analysts said the bargain-hunting that drove Tuesday’s rally was still on view on Wednesday, boosted by strong results from Dow members IBM and Procter & Gamble.
Shares of both companies were higher after IBM profits were boosted by good software and cloud computing sales, while P&G scored higher profits am.
