3 Popular Stocks Stuck In The Mud
Can they dig their way out?
These are not speculative small caps. These are not meme stocks. These are three of the most widely held, most researched, most talked-about companies on the planet.
And right now, all three are getting absolutely crushed.
Netflix. Meta. Microsoft.
Between them they represent trillions in market cap, billions of daily users, and a combined ownership stake in just about every retirement account in America. If you own an index fund, you own all three. If you’re an active investor, there’s a good chance at least one of them is sitting in your portfolio right now, bleeding red.
So let’s talk about it. How bad is it? What’s driving the pain? And most importantly, is there anything worth buying here?
How bad is it?
Bad. All three are in bear market territory or close to it. Netflix is down 45% from its all-time high. Microsoft is down 31%. Meta is down 29%. And those are from peaks set less than a year ago. These aren’t decade old drawdowns. This damage is fresh.
Meanwhile the Nasdaq is up nearly 19% over the same period that Meta has been cut by 13%. That’s a 32-point gap. That’s not underperformance. That’s a completely different conversation.
Microsoft has now underperformed the QQQ for 11 straight months. Its monthly RSI relative to the Nasdaq is the most oversold it has ever been. Ever. As in, going back further than most of your brokerage accounts have existed.
And Netflix is currently in the midst of the worst losing stretch in its 24-year history, down 9 of the last 10 months. It is now in its second largest drawdown of the last decade, trailing only the 2022 collapse when the entire growth universe was getting repriced from zero.
These numbers matter. Not to make you feel bad. But because the degree of the selloff is actually the starting point for figuring out whether any of this is worth buying.