Once everyone’s favorite movie service, Netflix (NASDAQ: NFLX) lowered its domestic subscriber guidance today pre-market. This announcement came two months after the company decided to raise the subscription fees and the investors drew their conclusions quickly, as the stock fell 16% in pre-market trading. The same trend has continued during the regular market hours and the stock hit new lows since November 2010 at $168 per share.
These markets are crazy. There is no denying it. In the last month, our dollar has decreased by about 2%, the Dow Jones Industrial Index is down about 13%, and the Euro Stoxx 50, a stock index of Eurozone stocks, is down nearly 20%! Crude oil is down over 13%, from nearly $100 per barrel to about $83.50, in a month!
Just today, stocks in Asia and Europe fell broadly as investors dumped risky assets amid renewed concerns that the global economy could slip into lower growth or even the forbidden “R” word - recession.