Nasdaq 100 futures slipped on Friday after a weak forecast from Netflix coupled with inflation concerns sent its shares along with other streaming companies spiraling lower, with Wall Street’s main indexes headed for another week of losses.
Netflix Inc plunged 19.6% in premarket trading after the streaming giant fell short of market forecasts for new subscribers at the end of last year and offered a downbeat outlook for early 2022.
The tech-heavy index has particularly come under pressure after rising Treasury yields and expectations of a more aggressive Federal Reserve in controlling inflation hit growth shares.
The central bank’s policy meeting next week will offer more clarity on its fight against surging inflation, after data earlier this month showed consumer prices rising to its highest level in four decades in December.
MacDailyNews Take: Oh, but it’s “transitory.” 🤣 (We like to chuckle at overmatched clowns in the early morning.)
Analysts also raised doubts about business prospects of pandemic market favorites including Netflix and Peloton Interactive on Thursday.
MacDailyNews Take: It took years of work to fix U.S. runaway inflation four decades ago, but, hey, every cloud has a silver lining: A decade-plus of boom times followed.
‘Tis best to get a handle on inflation, if you know how, while you still can. – MacDailyNews, May 11, 2021
When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill. And when government does it for 40 years, the bill comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident. — Ronald Reagan
Inflation is repudiation. — Calvin Coolidge
Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man. — Ronald Reagan
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