Wednesday’s Headlines: Netflix Is In Trouble

Wednesday’s Headlines: Netflix Is In Trouble

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Prologis Inc. (PLD) +2.2%

American Tower (AMT) +1.7%

Brown-Forman (BF.B) +1.5%

Boston Beer Co. (SAM) +1.5%

iRobot (IRBT) +1.1%

Moving Down ⬇️

Tripadvisor (TRIP) -10.4%

TrueCar (TRUE) -6.6%

Chuy's (CHUY) -5.9%

Eventbrite (EB) -5.8%

Stitch Fix (SFIX) -5.6%

1. Shares in Netflix (NFLX) are dropping faster than COVID-19 cases in highly-vaccinated areas following last night’s earnings call. Although revenue rose 24% year-over-year (YoY) to $7.16 billion and earnings jumped from $1.57 to $3.75 per diluted share, the 4 million net subscriber additions was a big miss on the 6 million predicted. Netflix management also forecast just 1 million subscriber additions in Q2, its lowest prediction in years. “In terms of Q1 performance, it really boils down to COVID, frankly,” said CFO Spence Neumann on the earnings call. “The extraordinary events of COVID continue to have a big impact on the world and for us, at a minimum, it creates some short-term choppiness in some of the business trends that we see.” Read the official press release here.

2. Another day, another PayPal (PYPL) innovation, and this time it’s crypto-related. As of yesterday, Venmo users can buy, hold, and sell Bitcoin and other digital tokens, potentially a significant step toward moving cryptocurrencies into the mainstream. In a bid to grow on its popularity among young Americans, PayPal has even added a gamifying feature to Venmo that allows users to share their crypto purchases with friends through the platform’s social feed. With more than 70 million users, Venmo is one of the most popular digital payment services in the U.S., but its affiliation with cryptocurrencies has seen its stock fall 1.3% on Tuesday. Read more here.

3. Amazon’s (AMZN) stock price took a 1% haircut following the latest news that it is opening its first-ever hair salon as it continues to explore new lines of business and promote some of the products it sells on its platform. The first Amazon Salon, which will be based in East London, will be spread over 1,500 square feet, and will initially open to Amazon employees only — there are 5,000 in its nearby London office — before opening to the public in “a matter of weeks”. Amazon is taking the term ‘diversification’ to a whole new level, and it remains to be seen if this experimental venture will pay off. Read the full story here.

There are 2 companies on the MyWallSt shortlist that will report earnings today:

Chipotle Mexican Grill (CMG)
Ericsson (ERIC)

Get this week’s full earnings calendar here.