Why Discovery Stock Tumbled 12% This Week

Shares of Discovery (NASDAQ: DISCA)(NASDAQ: DISCK) are down some 12% compared to where they closed trading last Friday, according to data from S&P Global Market Intelligence, reversing a rally that began in December as investors start transitioning away from early pandemic winners. As Netflix's (NASDAQ: NFLX) just-reported fourth-quarter earnings report shows (and Walt Disney's before it), it's becoming more difficult to attract subscribers to streaming services now that the lockdown phase of the pandemic is well in the rearview mirror and out-of-home activities are fully available again. The streaming service leader reported 8.3 million net new subscribers in the fourth quarter, lower than the 8.5 million subscribers it had guided toward, marking Netflix's slowest annual growth in six years.