Communications services companies fell sharply as streaming giant Netflix plunged.
Shares of the streaming service fell by more than 20% after it forecast a sharp slowdown in new subscriber growth, anticipating 2.5 million signups in the first quarter, down from four million for 2021.
Shares of other streaming services fell in sympathy, with a roughly 7% loss for Walt Disney. Investors are betting that reopening of offices throughout the U.S. will spark a change in behavior, hurting the sector, said Joe Kinahan, chief market strategist at TD Ameritrade.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-21-22 1705ET
