Netflix Is Down 51% From Its High. History Suggests This Is What Happens Next. - AOL

Netflix shares have dropped sharply from their recent peak as the company faces continued volatility. The article says the stock is 51% below its high set on Oct. 21, after Netflix announced third-quarter results that disappointed the market and forecast continued deceleration in revenue growth. In the fourth quarter, Netflix expects revenue to rise 11.5% year over year. The news reportedly sent shares down 6% immediately. Earlier, Netflix said it would lay off 1,000 employees, about 6% of its headcount. The piece argues that Netflix’s history includes multiple declines of at least 50% from past highs, including a 67% drop from early 2022 to mid-July. It also cites subscriber losses in 2022 before a rebound, and notes Netflix trades at a price-to-earnings ratio of 18.9 versus a 10-year average multiple of 93.3.