Shares of Netflix Inc. opened at $105, down 6%, on Friday after its worst one-day decline since stocks fell 8.3% on Sept. 16 2011, according to data from FactSet. Netflix shares slumped 7.8% on Thursday as the media sector suffered losses across the board. The Walt Disney Co. , which fell more than 6% on Thursday, and Time Warner Inc. , which dropped more than 5%, led the downward charge as uncertainty about the industry led Bernstein analysts to downgrade the two companies to market perform from outperform and re-assess the future of the sector. BTIG analyst Rich Greenfield on Thursday said that Netflix was simply being dragged down by the loss in confidence in the media industry. He believes the streaming giant is a good buy on the dip. The Guardian reported that Netflix has caused an outcry for excluding its roughly 450 DVD-by-mail service employees from its unlimited paid maternity and paternity leave. Earlier this week, Netflix raised subscription fees in some European markets by about $1.13, or one euro, for new customers. Netflix shares are up 115% in the year to date, while the S&P is down 2%.
Copyright © 2015 MarketWatch, Inc.
Continue Reading Below