Meta and Netflix five years performance
Two members of the FAANG group have been captured.
In the five months since the Nasdaq peaked at the end of last year, Netflix and Facebook (now Meta Platforms) have been shattered, giving up most of the gains they had accumulated over the past six months.
Netflix has fallen almost 68% since the Nasdaq peak on November 19, while Facebook has lost over 45% of its value since then and is down more than 50% from the peak level two months earlier.
In recent times, both companies seem to have unstoppable growth and impenetrable moats. Netflix was so built into American households with original content that it must be seen that the company could periodically increase its monthly subscription costs and not miss anything. And Facebook, with its billions of users and dominant ad targeting engine, amassed enviable amounts of online advertising revenue.
These stories have changed relatively quickly – with investors reassessing the companies’ prospects in the face of increased competition and a deteriorating macroeconomic environment.
As of Friday’s close, Netflix had a market value of $ 99.2 billion, down from over $ 300 billion in November. Facebook briefly joined the trillion-dollar club last year and is now down to 532.6 billion dollars.
The last week has been particularly bad for Netflix. The stock fell 35% on Wednesday, the worst day since 2004, after the power company said it lost subscribers for the first time in more than 10 years, and expects to lose as many as 2 million more in the current quarter.
Facebook announces earnings next week. The stock has been under pressure since its last earnings report in February, when the company missed expectations for user numbers and warned of increased competition from video apps such as TikTok.
Netflix has the lowest price since January 2018, while Facebook has not been so low since April 2020.
Markets fell largely on Friday as the outlook for rising interest rates spurred a sell-off. Nasdaq fell 2.6 percent.
Investors who joined Netflix and Facebook a decade ago are still solid in the green, but newer shareholders are suffering. Here the return is on a 10-year, five-year, three-year and one-year basis:
- 10 years: +1321,77%
- 5 years: +50.85%
- 3 years: -42.88%
- 1 year:– -57.64%