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Netflix Stock Drops After Weak Profit Report

It was a much better day for social media firms
By Newser Editors and Wire Services
Posted Oct 21, 2020 3:35 PM CDT

(Newser) – Stocks closed lower on Wall Street Wednesday as negotiations continued to drag on in Washington over delivering more aid for the economy. The S&P 500 lost 0.2% Wednesday after spending much of the day wobbling between gains and losses. House Speaker Nancy Pelosi said she’s made progress with the White House on more economic stimulus, and she hopes discussions will continue. But even if they reach a compromise, it may face stiff resistance in the Senate, the AP reports. The S&P 500 shed 7.56 points to close at 3435.56. The Dow Jones industrial Average fell 97.97 points, or 0.35%, to 28,210.82. The Nasdaq composite dropped 31.8 points, or 0.28%, to 11,484.69.

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Stocks of social media companies rose after Snap reported even bigger jumps in revenue and in the number of Snapchatters using its service each day than analysts expected. Snap surged 31.1% following its quarterly profit report. In its wake, Twitter jumped 7.8% for one of the biggest gains in the S&P 500, and Facebook rose 4.9%. On the losing end was Netflix, which fell 6.8% for one of the largest losses in the S&P 500 after it said growth in its subscriber rolls slumped by more during the summer than it had forecast. It also reported a weaker quarterly profit than analysts expected, following a surge earlier this year when people were yearning for things to watch amid coronavirus-caused lockdowns.

(Read more stock market stories.)

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