The stock market has once again made cryptocurrency appear stable in comparison, with the Netflix (NFLX) stock price dropping 25% in after-hours trading tod.
The news that triggered the dramatic drop was the disclosure on Tuesday that the streaming service lost 200,000 customers in the first quarter of 2022 and expects to lose another two million this quarter. According to Bloomberg, this is the first time the company has lost user numbers since 2011.
Investors reacted by selling NFLX shares in after-hours trading, causing the stock to plummet to a new yearly low of $258.90. It is unknown what price the stock will open at when trading resumes on April 20 at 1:30 p.m. UTC.
Such price action has elicited some glee from the crypto community, which has long been chastised by traditional investors for being too volatile.
Netflix’s stock price has performed worse in 2022 than Bitcoin’s (BTC) stock price has this year. NFLX has dropped 57 percent since January 1, 2022, when it peaked at $597.37. According to CoinGecko, BTC has fallen 11% since its opening price of $46,319 in 2022 to $41,288.
This year, other tech stocks have experienced daily losses comparable to those seen in the cryptocurrency market. PayPal (PYPL) fell 20% from $172.77 to $139.89 on February 2. On the same day, Meta Platforms (META), formerly Facebook, fell 25% from $327.82 to $244.65.
But, before crypto pundits get too far ahead of themselves, it’s worth noting that Bitcoin has historically fallen harder than those tech stocks during previous crypto market crashes. The last time BTC fell more than 25% in a single day was March 12, 2020, when it fell 41% from $7969 to $4776.
According to a study released on April 16 by the crypto research firm Into the Block, BTC and Ether (ETH) have been “less volatile than many stocks, especially those with crypto offerings.”
The Sharpe ratio was used in its analysis to compare volatility across different investments. The lower the score, the lower the volatility of the asset. Bitcoin received a -0.02 score, while Square (-0.05), MicroStrategy (-0.02), and Coinbase (-0.02) all underperformed BTC.
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