The recent sell-off isn’t just affecting the “Magnificent Seven” stocks.
High-flying stocks such as Netflix (NFLX), AMD (AMD), Micron (MU), Dell (DELL), and Palantir (PLTR), among others, have also experienced significant declines amid the latest market downturn.
Netflix’s stock has experienced a drop of over 10% from the previous month, with some analysts on Wall Street cautioning that its recent fluctuations may indicate a more troubling trend in the overall stock market.
“A decline of over 9% in a single day for NFLX suggests we’re witnessing a level of panic,” wrote Mizuho analyst Jordan Klein in a note to clients on Friday. “It’s been a favored refuge for many in the large-cap tech sector.”
Klein noted that while some analysts have pointed out Netflix’s substantial content spending and potential challenges in viewer engagement, the company boasts “no tariff risk, pricing power, and seems nearly recession-proof.”
Consequently, a substantial decline in the stock in a single day “indicates that investors are eager to minimize their exposure to equities at this time.”
Other non-Magnificent Seven stocks have echoed this sentiment over the past month, coinciding with the last record highs in the market.
Chip manufacturers like AMD and Micron have seen their stocks drop by approximately 13% and 6%, respectively. Palantir, once a popular momentum stock on Wall Street, has plunged a staggering 30%. Meanwhile, Dell, recognized as a lesser-known AI stock, has fallen roughly 20% in the same timeframe.
