(Bloomberg) — Netflix Inc.’s third-quarter subscriber forecast disappointed investors and put an improbable record of resilience to the test in a famous gauge of tech shares.
A streak in which the Nasdaq Composite managed to go two months without posting back-to-back declines was under threat after the Netflix news, which pushed exchange-traded funds tracking the benchmark down more than 1% after the 4 p.m. close in New York Thursday. An overnight rebound pointed to a flat open for the index when cash trading resumes Friday in New York.
Netflix said it expects to add 2.5 million paid subscribers to its streaming service in the third quarter, about half the estimate in data compiled by Bloomberg. The stock was down about 8% from its close at 4 p.m. in New York, dragging Amazon and Facebook down in sympathy.
A retreat Friday in the larger Nasdaq Composite would end the 43-day stretch without posting losses two days in a row.
Two down days in a row hardly proves that tech shares’ 2020 dominance is coming to an end, but the trend has shown signs of cracking in recent weeks.
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