Netflix shares fell 4% as the 10-year U.S. Treasury yield rose to 4.79%, pressuring long-duration growth stocks; Disney fell 2%, and Warner Bros. Discovery was largely flat.
Netflix stock fell 4% as the 10-year U.S. Treasury yield rose to 4.79%, making it the most affected company in the streaming sector by interest rate repricing. Its high price-to-earnings ratio makes it more sensitive to interest rate changes. Disney's stock fell 2%, but its decline was relatively smaller due to its diversified businesses, including theme parks, sports, and consumer products, which diluted its duration risk. Warner Bros. Discovery's stock only fell 0.3%, remaining largely flat, supported by its lower valuation and an upcoming transaction (the deal with Paramount Skydance), which shielded it from interest rate-driven repricing.
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