Wednesday’s Headlines: Netflix Smashes Wall Street Estimates But Delivers Weak Guidance

Wednesday’s Headlines: Netflix Smashes Wall Street Estimates But Delivers Weak Guidance

1. Streaming giant Netflix crushed Wall Street's targets for new subscribers and earnings in its fourth quarter, but its guidance was well below expectations. Netflix added 8.76 million new streaming subscribers in the December quarter, beating estimates of 7.8 million. The company earned $1.30 a share on sales of $5.47 billion in the fourth quarter, versus estimates of 53 cents a share on sales of $5.45 billion. For the current quarter, Netflix expects to add 7 million new subscribers worldwide, which is lower than analyst estimates of 8.1 million. For the full earnings report, read here

2. Shares in Trip.com plummeted more than 8% yesterday as China's travel industry braces for the impact of a growing coronavirus outbreak in the region. The company decided to waive its cancellation fees in light of current events as fears of a possible epidemic begin to escalate. Hotel chain Huazhu Group also saw its stock drop almost 11%, as the virus outbreak coincides with the popular Lunar New Year holiday where millions are expected to travel within China. Get a complete report here.

3. Tesla stock continued to break new ground on Tuesday, closing at an all-time high of $547.20 per share, falling just short of a $100 billion valuation. The 7% surge came as analysts set the company an $800 12-month price target, up from previous guidance of $530 per share, quoting the company’s technological dominance, strong sustained demand, and ability to execute. However, the company’s valuation has proven divisive among Wall Street analysts, as many feel the company to be overvalued, but we will have to wait until the company’s January 29th earnings call. Read the full story here.

JamieJamie

Sign up for free to continue reading.