Why Netflix, Atlassian, and Gildan Activewear Slumped Today
The stock market posted losses on Friday, reacting negatively to some weak readings on the Chinese economy and ongoing concerns about trade tensions between the U.S. and China. Although the newly started earnings season had generally gone well earlier in the week, some less optimistic reports last night and this morning also weighed on sentiment. Major benchmarks didn't have huge declines, but some individual stocks took much larger hits. Netflix (NASDAQ: NFLX), Atlassian (NASDAQ: TEAM), and Gildan Activewear (NYSE: GIL) were among the worst performers. Here's why they did so poorly.
Shares of Netflix dropped 6%, falling back from its gains on Thursday following the release of its third-quarter financial results. The streaming video specialist had initially made investors excited about a rebound in the number of new subscribers it brought on during the quarter, appeasing some fears that a slowdown might continue for an extended period. Yet analysts looking at the stock after the company's latest financial report concluded that risks from heightened competition are still present. For those watching Netflix, all eyes will be on the competitive element of the streaming video space, as new services from rivals are slated to become available next month.
Image source: Netflix.
Source Fool.com
