Wednesday’s Headlines: Netflix Predicted to Lose 4 Million Domestic Users
1. Shares in personal-styling service Stitch Fix rose nearly 5% on Tuesday after reporting first-quarter results that exceeded analysts' estimates. The company reported a loss of $178,000, or 0 cents a share, compared with net income of $10.7 million, or 10 cents, in the year-ago period, on top of revenue of $445 million — up 21% on the same period a year ago. Separately, Stitch Fix said Elizabeth Spaulding, global head and founder of Bain & Company's digital practice, will join as president. Get the full story here.
2. Shares in streaming giant Netflix fell more than 3% on Tuesday after analysts reported that the company could lose up to 4 million domestic subscribers in 2020. The report comes on the back of the success of rival Disney’s new Disney Plus streaming platform, which reported nearly 10 million subscribers mere days after launching last month. Erosion in the U.S. subscriber base could have a meaningful negative impact on Netflix’s stock in 2020, as the company deals with the threat of competition and mounting costs. For the complete report, read here.
3. Midwestern favorite Casey’s General Stores saw its stock price drop more than 9% on Tuesday following a less than stellar earnings report. The company reported that same-store grocery sales were up 3.2% during the quarter to just about beat estimates of 3.1%, while same-store fuel and prepared food sales missed estimates. CEO Darren Rebelez responded to the drop with an encouraging update: "We are optimistic about the new initiatives that will launch in the back half of fiscal 2020 and beyond, and believe they will continue to create additional shareholder value." Get the full view here.