Netflix shares crashed Thursday — down 7.8% at market close.
The entire stock market had a bad day, with tech stocks slumping across the board, but Netflix fared worse than most.
Earlier Thursday, several media stocks began to tumble as Disney and Time Warner were downgraded by analysts from Sanford C. Bernstein, who changed their rating from "outperform" to "market perform." Disney ended the day down 6% and Time Warner down 5%. Shares of CBS, Comcast, and Viacom also fell.
This is not the first time recently that a lack of investor confidence in Disney has set off a plunge for media stocks. Earlier this month, a decline in outlook for subscribers at ESPN set off a severe dip in major media stocks.
Netflix, however, seemed impervious at the time.
Many speculated that the reason Netflix was bucking the trend was that it was contributing, in part, to the decline of cable television by encouraging cord cutting. Now it seems that Netflix is not completely disconnected from the stock market woes of other media companies.
