The live stream site’s stock price plummeted when it released poor user statistics, prompting some in the cryptocurrency market to complain about the volatility. The share market has indeed made cryptocurrency appear stable in comparison, with the Netflix (NFLX) stock value plummeting 25% after trading today.
The item that triggered the steep drop was the disclosure on Tuesday that the streaming platform lost 200,000 users in the first half of 2022 and expects to lose another two million this year. As per Bloomberg, this is the first time the company has lost its user base since 2011.
Traders responded by selling NFLX stocks in the after-hours trade, causing the stock to plummet to a new annual low of $258.90. It is unknown what value the shares will open about when trading resumes on April 20 at 1:30 p.m. UTC.
Such market activity has elicited some joy in the bitcoin ecosystem, which mainstream investors have long chastised for being overly volatile.
Benjamin Cowen, the host of the YouTube programme Into the Cryptoverse, recently tweeted to his 622,000 subscribers that the NFLX drop reminded him of “how stocks grew mostly like #crypto, instead of the other way; about.”
NFLX’s share prices have done worse in 2022 than Bitcoin’s (BTC) share price has this year. NFLX had declined 57 percent since January 1, 2022, when it peaked at $597.37. CoinGecko has fallen 11% from its very beginning price of $46,319 in 2022 to $41,288.
Several tech equities have experienced daily losses comparable to those observed in the cryptocurrency market this year. PayPal (PYPL) fell 20% from $172.77 to $139.89 on February 2. The same day, Meta Networks (META), formerly Facebook, fell 25% from $327.82 to $244.65.
But, while cryptocurrency experts get too far forward themselves, it’s worth noting that Bitcoins have historically plummeted worse than similar tech equities during the last crypto occurrences. The last time BTC declined more than 25% in one day was March 12, 2020, when it plunged 41% from $7969 to $4776.
According to a study issued on April 16 by the crypto market researcher Into The Block, BTC and Ether (ETH) have been “less volatile than so many equities, particularly those with cryptocurrency listings.”
The Sharpe ratio was employed in its research to analyze variability across investment options. The lesser the rating, the lower the volatility of the commodity. Bitcoin scored a -0.02 score, while Square (-0.05), MicroStrategy (-0.02), and Coinbase (-0.02) also outperformed BTC.
Natalie Brunell, the presenter of the Coin Stories program, recently tweeted that adding Bitcoin to Netflix’s financial statements could help it overcome some of its present challenges.
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