Wall Street rebounded on Wednesday after a two-day decline in a broad rally as a tilt toward stocks poised to benefit from a recovering economy offset Netflix Inc's sell-off after its disappointing results a day earlier.
Wall Street rallied on Wednesday, rebounding from a two-day decline, as a tilt toward stocks poised to benefit from a recovering economy offset Netflix Inc's sell-off after its disappointing results.
U.S. Treasury yields remained range-bound on Wednesday even after an auction of 20-year bonds showed strong demand, a pattern analysts expect to persist until next week's economic data releases and Federal Reserve policy meeting.
Consumer stocks were ending broadly higher in Wednesday trading, with the SPDR Consumer Staples Select Sector ETF climbing 0.5% while the SPDR Consumer Discretionary Select Sector ETF was rising 1.3%.In company news, DISH Network (DISH) climbed 11% after the satellite television
Wall Street rallied on Wednesday, rebounding from a two-day decline, as a tilt toward stocks poised to benefit from a recovering economy offset Netflix Inc's sell-off after its disappointing results.
Netflix (NASDAQ: NFLX) first-quarter earnings show what happens when there isn't a global pandemic to artificially boost subscriber totals, and that has one Wall Street analyst seeing the video streaming giant's stock cratering.Although Wedbush analyst Michael Pachter actually ra
Consumer stocks were moderately higher in Wednesday trading, with the SPDR Consumer Staples Select Sector ETF climbing 0.5% while the SPDR Consumer Discretionary Select Sector ETF was rising 0.8%.In company news, Inter Parfums (IPAR) gained 7.9% after the fragrance and cosmetics
Wall Street's main indexes rose on Wednesday after falling for two straight sessions, as gains in mega-cap stocks more than offset declines in Netflix following disappointing results.
Wednesday brought some relief to Wall Street as major market benchmarks regained some of their recent losses. At 11:30 a.m. EDT the Nasdaq Composite (NASDAQINDEX: ^IXIC) had managed to gain more than half a percent on the day, clawing back some of its declines on Monday and Tuesd
The Vanguard Russell 1000 Growth ETF is seeing unusually high volume in afternoon trading Wednesday, with over 109,000 shares traded versus three month average volume of about 33,000. Shares of VONG were up about 0.5% on the day.
A global stock index edged up on Wednesday as Wall Street and Europe bounced back from large drops, while oil prices continued to be weighed by rising COVID-19 cases in Asia.
Netflix shares fell by as much as 7% in early trading on Wednesday after reporting a lower-than-expected number of paid memberships for 1Q 2021. The company reported 208 million paid memberships versus 210 million originally expected. The streaming giant attributed the membership growth slowdown to a big COVD-19 pull forward last year. A lighter content slate also had a hand in the slowdown.
However, Netflix (NFLX) was still able to post a 24% year-over-year increase in revenue that totaled $7.16 billion, in line with the company’s guidance. Operating income more than doubled year-over-year to $1.96 billion. Average revenue per membership benefited from price hikes and rose 6%. Paid net additions in the quarter totaled 4 million, well below estimated 6 million.
Earnings per share in the quarter more than doubled to $3.75 against $1.57 reported in the year-ago period. Netflix ended the first quarter with a much bigger membership and revenue base than it had last year in the same quarter. Net cash from operating operations nearly tripled to $777 million compared to $260 million a year ago. The company is on track for full-year free cash flow to break-even.
Netflix is projecting a solid second half of the year. The company is betting on the return of new seasons for some of its biggest shows and films to fuel growth.
“We are optimistic about the future and believe we are still in the early days of the adoption of internet entertainment, which should provide us with many years of growth ahead,” Netflix stated in a press release.
Netflix shares are up 1.7% year to date after a 67% pop in 2020. (See Netflix stock analysis on TipRanks).
According to Stifel Nicolaus’s analyst Scott W.Devitt, Netflix is well positioned to add over 100 million subscribers over the next five years and reach over 400 million paid subscribers by 2030.
“Steady scaling of content investments against a growing subscriber base should fuel continued operating margin progress despite continued content investments. International penetration continues to increase with greater adoption in key markets, including Europe, Latin America, and APAC, with significant runway remaining,” Devitt wrote in a research note
Devitt has since confirmed his upgrade of Netflix to a Buy, with a $560 price target, implying 10% upside potential to current levels.
Consensus among analysts is a Moderate Buy based on 21 Buys, 4 Holds and 4 Sells. The average analyst price target of $598.52 implies approximately 17% upside potential to current levels.
NFLX scores 8 out of 10 on TipRanks’ Smart Score rating system, which indicates that the stock is likely to outperform the overall market.
Related News
Abbott Starts Shipping Over-The-Counter COVID-19 Self-TestAT&T To Provide UConn With 5G NetworkGM And LG To Invest $2.3B In Tennessee Manufacturing Plant
Wall Street cast doubt on Wednesday on Netflix Inc's ability to bounce back strongly from a first-quarter slowdown in subscriber growth that pointed to fatigue among viewers after a year of COVID-19-driven binge streaming.
What happenedShares of Netflix (NASDAQ: NFLX) were getting a thumbs down from investors today after the streaming giant reported underwhelming subscriber growth in its first quarter and indicated that subscriber additions would be even weaker in the second quarter.
In early trading on Wednesday, shares of Intuitive Surgical topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.7%. Year to date, Intuitive Surgical registers a 5.8% gain.
In early trading on Wednesday, shares of Intuitive Surgical topped the list of the day's best performing components of the S&P 500 index, trading up 6.3%. Year to date, Intuitive Surgical registers a 5.4% gain.
The S&P 500 and the Dow Jones indexes were higher on Wednesday after sliding for two straight sessions, while the Nasdaq remained muted as Netflix kicked off quarterly earnings for technology behemoths with a disappointing report.
Actors Anna Kendrick, Daniel Dae Kim and Toni Collette star as a space crew whose two-year mission to Mars is thrown into turmoil when they discover an unplanned passenger on board their spacecraft in the new Netflix movie "Stowaway".
Consumer stocks were mixed pre-bell Wednesday. The Consumer Staples Select Sector SPDR Fund (XLP) was flat while the Consumer Discretionary Select Sector SPDR Fund (XLY) was 0.33% lower in recent trading.Netflix (NFLX) reported Q1 EPS of $3.75, compared with $1.57 a year earlier.
MTNewswires
Checked
17 minutes 4 seconds ago
This feed is responsible for generating the rss feed related to the topic NFLX