An Update on the Deflation of Netflix

As revenue shrinks at Netflix, more heads have rolled at the subscription-based streaming service of movies and television shows.

A June 23 Variety headlines says:

Netflix Begins Second Round of Layoffs, 300 Positions Cut

About a month ago, around 150 employees were let go.

The layoffs are also occurring amid a deflation in the company’s stock price.

The May Elliott Wave Theorist provided this chart and eye-opening perspective:

Netflix is down 70% from its high. Many people think it can’t go lower. Is this an indication that stocks are near a major bottom?

[The chart] shows the stock’s price history. From its low at $0.35 in 2002, Netflix doubled eleven times in 19 years to reach 700.99. Since then, it has been cut in half twice. There is certainly room for more halvings. If you want to monitor the milestones, they are: 700.99, 350.50, 175.25, 87.62, 43.81, 21.91, 10.95, 5.48, 2.74, 1.37, 0.68 and 0.34.

Keep in mind that this is a picture of a stock that has been aggressively bid lower since November 2021. Many stocks are still near highs and have far more room to fall than Netflix.