NASDAQ registered one of its worst daily performances in months on July 20 as the index got dragged down by the crashing stocks of Tesla and Netflix.
On Thursday, NASDAQ declined by 295 points, or 2.05 percent, which is the biggest daily percentage decline since Feb. 21, when the index fell by 2.5 percent. The plunge was largely driven by two stocks: Tesla and Netflix. While shares of Netflix dipped by 8.4 percent, to $437.42, Tesla shares declined by around 9.7 percent, to $269.90. Investor confidence in both these companies was shaken due to concerns about earnings and valuation metrics.
Netflix was negatively affected after its second-quarter earnings fell short of market expectations. Revenue for the second quarter came in at $8.19 billion, a 2.7 percent increase from a year back. However, it was shy of analyst expectations of $8.3 billion. In addition, the company only projected $8.52 billion in revenue for the third quarter, less than the $8.7 billion expected….