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Nasdaq Declines in Correlation to Netflix's Weakened Earnings

Netflix stock fell following weak subscriber numbers

The tech-heavy Nasdaq fell on Wednesday as streaming giant Netflix's first drop in subscribers in a decade shook investor confidence in other high-growth companies, fearful they may face similar post-pandemic performance issues.

Positive earnings from consumer giant Procter & Gamble and IT firm IBM provided momentum though to the other Wall Street benchmarks, with the blue-chip Dow topping 1 percent in early-afternoon trading and the S&P 500 trading flat.

Netflix plunged 36.6 percent, set for its worst day since October 2004, after it blamed inflation, the Ukraine war and fierce competition for the subscriber decline and predicted deeper losses ahead.

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