Moments ago, Netflix is on pace to have its worst day in over 2 years, with its shares down 8.8% by noon. Despite posting a recent first-quarter earnings and revenue beat, investors were swayed by a weaker full-year revenue growth outlook shared by Netflix. This drop in stock price prompted Canaccord Genuity analyst Maria Ripps to downgrade the stock to a hold rating from buy, citing “limited growth catalysts” ahead.
In the midst of the market pullback, the S&P 500 fell below 5,000, highlighting its sixth down day and worst week since September. The index had previously reached the 5,000 level in early February. Tesla and Micron Technology were among the Nasdaq’s worst weekly performers, while American Express boosted the Dow. American Express shares surged more than 4% after posting stronger-than-expected diluted earnings per share and affirming full-year guidance, outperforming in Friday’s session.
In midday trading, Ulta Beauty, Netflix, and Shopify were some of the companies making headlines. Ulta Beauty shares fell 3% after an analyst downgrade, while Netflix sank more than 7% following its announcement to stop reporting subscriber growth in its quarterly earnings. On the positive side, shares of Shopify advanced 1.8%, bolstered by a upgrade from Morgan Stanley based on growth potential. This diverse range of stock movements highlights the ongoing volatility in the market.