Netflix Dips 36.18% As US Internet Coys Lose $800bn In 12months

Popular streaming platform Netflix has been hit with a loss of 36.18 percent in market capitalisation, bringing its current capitalisation to $143.84 billion, down from $225.39 billion in April 2022.

Netflix is one of the leading American internet companies that have been hit hard by the ongoing economic uncertainty, with the firms being forced to strategise on navigating the current environment.

The impact has seen the company shed a big share of its market capitalisation as the uncertainty prevails.

Data by Finbold indicates that as of April 26, the largest internet companies in the US lost a total of $814.56 billion from their market capitalisation over the past 12 months. As of April 2022, the companies controlled a market cap of $4.34 trillion, while in 2023, the figure stands at $3.53 trillion.

Airbnb follows Netflix closely with a loss of 29.36 per cent, currently valued at $70.89 billion. Amazon, the second highest-valued internet company in the US, experienced a market cap drop of 28.43 per cent over the last 12 months, presently worth $1.05 trillion.

Payment platform PayPal, with a current market cap of $80.71 billion, recorded losses of 19.22 per cent, followed by ServiceNow at -15.91 per cent. Other notable losses include Alphabet (-15 per cent), Uber (-3.16 per cent), and Meta Platforms (-1.91 per cent).

Elsewhere, online travel firm Booking Holdings experienced gains of 10 per cent, increasing its market cap from $90.52 billion to $99.58 billion. Equinix’s market worth increased by 2.09 per cent from $65.04 billion to $66.40 billion.

The poor showing of the firms owes to the prevailing economic downturn that has emerged from tightening monetary policies and higher inflation, contributing to heightened stock market volatility.

Indeed, the market cap drop is contrary to the companies’ and broader technology sector performance, where they have historically exhibited resilience amid economic uncertainty.”

For the companies to rekindle their market worth, the economic outlook will play a vital role alongside the firms’ ability to adapt to new strategies to retain market competitiveness, the Finbold study noted.