This hasn’t been a great year for Netflix (NASDAQ: NFLX).
The stock is down 19% to date as of writing
And even worse, it has declined about 43% from its most recent high. While the company remains the leader in streaming, Netflix’s poor second-quarter guidance, a leadership change, and a long acquisition battle that failed to materialize have all taken a toll on the stock. Investors may wonder what will happen next and whether this is a good time to scoop up Netflix’s shares on the dip.
Previous instances of the stock dropping by 40% or more might give us a clue. Why the stock could fall even further In some cases, Netflix’s massive declines bottom out at around 40%. That’s what happened between mid and late 2018, when the stock dropped by that much and subsequently recovered.