Markets check: Stocks mixed as Netflix weighs down the Nasdaq

Yahoo Finance's Emily McCormick breaks down how stocks are trading on Wednesday.

Video transcript

DAVE BRIGGS: What's driving the NASDAQ down? It's been the conversation of the week thus far. It is Netflix. Their first subscriber loss in 10 years. Let's get to Emily McCormick who joins us now with a look at Netflix and the disaster that it's been for the last 18 hours or so. Hi there, Emily.

EMILY MCCORMICK: Hi, Dave. It's great to be back with you guys in the studio. And taking a look at shares of Netflix still under tremendous pressure in afternoon trading, after the company unexpectedly posted a decline in net subscribers for its first quarter, and also guided to a loss of another two million net subscribers for the current quarter. So not a lot of good news here for investors to be latching onto. But as we can see here, many of the other streaming names are also under pressure.

But I do want to highlight a little bit more about what's been going on with shares of Netflix, down about 36% intraday as we speak. If we take a look over the past three days, you can really see that sharp decline that took place in after-hours trading yesterday. This company reported around 4:00 PM Eastern last night, and continuing to sell off on track for its worst day since 2004.

Now if we take a look at what has been happening for the year to date, again, seeing that sharp drop that just took place yesterday in the past 24 hours. And $50 billion-- more than $50 billion-- is the amount of market capitalization that Netflix has actually shed at this point. If we take a look here on a market cap basis, you can see that Netflix's market capitalization is now sitting right under about $99 billion. It had been above $150 billion as of market close yesterday.

But taking a look at some of the price action in the other streaming giants, you can see Disney falling in sympathy with Netflix, even though Netflix did cite competition from the likes of Disney Plus, from some of the other streaming giants as well as part of the reason that they saw that attrition, that churn in subscriber growth. So clearly we are seeing some Wall Street analysts believing that this is going to be a widespread problem, not only for Netflix, but potentially likely going to see some pressure for the other streamers as well. And as you can see here, also carrying over for Roku. That stock down nearly 6%.

But on the heels of this earnings report, I do want to highlight a couple of analyst calls, analysts notes that we've been getting. JPMorgan Chase analyst Doug Anmuth called this a sea change quarter for Netflix in which the company conceded to every key point of the bear thesis. That's coming from the note of Doug Anmuth himself. Meanwhile, Wedbush analyst Michael Pachter likewise said "it is likely that Netflix is dead money," that's a quote from him as well-- "for at least another quarter." We are really going to want to see what's going to catalyze subscriber growth for this company because again, that stock down nearly 40% in this afternoon trading. Guys?

- All right, taking a look at a ton of the streaming names there. All of them certainly moving in lockstep with Netflix as well on the day. Emily, appreciate that breakdown.