FUBO - Why Roku FuboTV and Others Followed Netflix So Much Lower Today
Friday was a tough day for the broad market, but a terrible session for a handful of stocks from the streaming sector. Ringleader Netflix (NASDAQ: NFLX) led the charge, losing nearly 22% following alarming news regarding its probable subscriber growth. Shares of fellow streaming industry cohort Roku (NASDAQ: ROKU) tumbled more than 9% as well on Friday, however, as investors extrapolated Netflix's news. Even outfits like cable content providers AMC Networks (NASDAQ: AMCX) and Discovery (NASDAQ: DISC.A) (NASDAQ: DISCK) , (NASDAQ: DISC.B) along with fuboTV (NYSE: FUBO) fell more than most today, deemed guilty by their mere association with Netflix's business model.
It could have been worse. Netflix managed to add another 8.28 million subscribers to its customer roster during the three-month stretch ending in December, just missing its guidance by around 200,000 people. Its outlook for the quarter currently underway, however, is more discouraging. Netflix says it's expecting net adds of 2.5 million customers for the period ending in March, well short of the 6.26 million consensus estimate that the analyst community was modeling. The company's suggested figure is also a clear slowdown from the 4 million paying subscribers it added during the first quarter of 2021. Another price increase is also in the cards. The stock resultingly logged its biggest single-day loss since 2012.
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Why Roku, FuboTV, and Others Followed Netflix So Much Lower Today