Netflix and Facebook shares have fallen since the peak of technology in November

Meta and Netflix five years of performance

CNBC

Two members of the FAANG group have been captured.

In the five months that have passed since the Nasdaq peak at the end of last year, Netflix and Facebook (now Meta Platforms) have been crushed and abandoned most of the gains they had accumulated over the past half decade.

Netflix has fallen nearly 68% since the Nasdaq peak on November 19, while Facebook has lost over 45% of its value since then and has fallen more than 50% from its highest level two months earlier.

In recent times, both companies seemed to have unstoppable growth and impenetrable moats. Netflix was so embedded in U.S. households with original content to be seen that the company could periodically raise its monthly subscription costs and not miss a beat. And Facebook, with its billions of users and dominant ad targeting engine, accumulated enviable amounts of online ad revenue.

These stories have turned relatively quickly – with investors reassessing 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, but is now down to $ 532.6 billion.

The past week has been particularly bad for Netflix. The stock plunged 35% on Wednesday, its worst day since 2004, after the streaming company said it lost subscribers for the first time in more than 10 years and that it 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 the last earnings report in February, when the company missed expectations for user numbers and warned of increased competition from video apps like 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 prospect of rising interest rates spurred a sell-off. Nasdaq fell 2.6 percent.

Investors who came in on Netflix and Facebook ten years ago are still solid in the green, but newer shareholders are suffering. Here are the returns on a 10-year, five-year, three-year and one-year basis:

Netflix

  • 10 years: +1321,77%
  • 5 years: +50.85%
  • 3 years: -42.88%
  • 1 year:– -57.64%

Meta

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