Netflix Has Their ‘Judder Moment’

This past week Netflix (NFLX) had their ‘Judder Moment’ as their stock crashed nearly 40% from $349 to $211 in the blink of an eye.

And when you consider that only a few months ago NFLX was trading near $700 per share, the crash to $211 is even more significant.

Can you say a 70% decline?

And for those wondering what a ‘Judder Moment’ is, the technical description is when the motion isn’t always smooth on your TV when watching movies, the ‘Judder’ occurs when the frame rate of the content you are watching doesn’t divide evenly into the refresh rate of your television.

Translation:  The pixels in your TV picture jump around causing erratic, blurry, and frozen frames.

It’s kind of like a drunk having hallucinations.

And speaking of drunks, most of the analysts following NFLX were caught off guard and ended up with their standard excuse of: “I’m shocked I tell you. Shocked! Who could’ve foreseen this coming?”

LMAO!

It’s a typical Wall Street CYA tactic.

Especially when they predicted that NFLX subscriptions were expected to rise by 2 million but actually fell by 200,000.

Ouch!

And, like politicians, the Boyz on Wall Street never admit when they make mistakes.

But the real question you should be asking is:  which market leading stock will be next to reveal its hidden flaws and tumble from grace? (Cough! Tesla, Cough! Cough!)

Their ‘Judder Moment’ Affecting the FAANGS

Up until this past week NFLX was an integral part of Wall Street’s famous FAANG superstar lineup of: Facebook, Apple, Amazon, Netflix, Google.

Not anymore.

So, does that mean that FAANGS will now be called the FAAGS?

LOL!

Any Social Justice Warrior reading this is probably blowing a fuse after reading that last comment.

But I digress.

A quick look at the FAANG stocks reveals an interesting picture.

Facebook is going the way of “My Space” (remember them?) They’re now trying to reverse themselves in the Metaverse.

Amazon is facing increased competition along with declining share price.  But their CIA deals should keep them from falling apart.

Apple is possibly pricing themselves out of the PC/laptop market with their uber-expensive MacBooks.

Netflix has seen their subscription base implode.  Mostly (and Ironically) because of lockdowns and increased competition, and constrained consumer discretionary spending.

Google is struggling in a mess of regulation that’s sucking the life out it, and increasing consumer dissatisfaction.

And just like history hasn’t been kind to big name companies like US Steel, Shell, Bethlehem, ATT, Sears, etc., the FAANG stocks appear vulnerable.

So, what should you do?

Start by reading our “Short and Sweet Tips” column every month in our “…In Plain English” newsletter (HERE).

Share this with a friend…especially if they own the FAANG stocks.

They’ll thank YOU later.

At Financial$Matter We’re Not Just About Finance.

We simply use finance to give you hope.

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Oh, the Irony!