NFLX Fell 5.1% In A Day. Past Crashes Went Deeper.
- In Inflation Shock, Netflix stock declined 76% vs 25% for S&P 500. During global financial crisis, it dropped 56% compared to the S&P 500’s 57%.
- Following the Inflation Shock, the stock took 28 months to recover, compared to 15 months for the S&P 500. In the 2018 correction, the stock took 16 months to recover, compared to 4 months for the S&P 500.
Netflix Stock Performance In Market Crashes:
| NFLX | S&P 500 | |
|---|---|---|
| Dot-Com Bubble | ||
| % Change from Pre-Recession Peak | -29% | -37% |
| # of Months for Full Recovery | 1 | 69 |
| Global Financial Crisis | ||
| % Change from Pre-Recession Peak | -56% | -57% |
| # of Months for Full Recovery | 5 | 49 |
| 2018 Correction | ||
| % Change from Pre-Recession Peak | -44% | -20% |
| # of Months for Full Recovery | 16 | 4 |
| Covid Pandemic | ||
| % Change from Pre-Recession Peak | -23% | -34% |
| # of Months for Full Recovery | 1 | 5 |
| Inflation Shock | ||
| % Change from Pre-Recession Peak | -76% | -25% |
| # of Months for Full Recovery | 28 | 15 |
Worried that NFLX could fall much more? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.
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