Netflix Inc NFLX shares are trading higher Wednesday as streaming, gaming and social media stocks bounce back after falling in sympathy with Snap Inc SNAP on Tuesday.
What Happened: Snap shares tanked after the company filed a Form 8-K with the SEC showing it expects to miss its previously-issued guidance.
"The macroeconomic environment has deteriorated further and faster than anticipated," Snap said in the filing. As a result, the company now expects to report second-quarter revenue and adjusted EBITDA "below the low end" of its guidance range.
Several analysts also lowered price targets on the social media stock following the guidance update.
Related Link: A Warning Sign For Other Advertisers? Snapchat Analysts React To Shocking Guidance Cut, Stock Sell-Off
Investors fear the headwinds impacting Snap may be affecting several other companies with consumer-facing products. However, most of those stocks are bouncing back today, including Netflix.
Netflix is one of the world's leading entertainment services with 222 million paid memberships in over 190 countries.
NFLX 52-Week Range: $162.71 - $700.98
The stock was up 3.49% at $186.63 at press time, according to data from Benzinga Pro.
Photo: yousafbhutta from Pixabay.
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