Earnings Engine Conks Out in Nasdaq's Worst Week Since February
Bloomberg - Apr 22, 2016
Disappointing earnings reports erased $68 billion from shares of Netflix Inc., Microsoft Corp. and Alphabet Inc. and sent the Nasdaq 100 Index to its biggest weekly drop since February.
Netflix saw its stock fall the most among the trio after rattling investors with forecasts for weakening subscriber growth overseas. The Los Gatos, California-based online video provider slid 14 percent, the largest drop since September. Concerns about a turnaround plan sent Microsoft down 7 percent while Google’s parent declined 5.4 percent on margin concerns.
The three stocks accounted for 80 percent of a 1.5 percent retreat in the Nasdaq 100, the biggest decrease since it lost 6 percent in the week ending Feb. 5. The Standard & Poor’s 500 Index added 0.5 percent.
“There was a nice run-up in many of these kind of names last year, but when you have that kind of rally you’re more likely to have a reaction to negative news,†Lisa Kopp, head of traditional investments at U.S Bank Wealth Management in Minneapolis, Minnesota, said by phone. “It does affect sentiment as people look at these.â€
