Friday's Headlines: Apple Wants to Help You Save
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Netflix (NFLX) +5.3%
Axos Financial (AX) +4.8%
Microsoft (MSFT) +3.8%
Moving Down ⬇️
Etsy (ETSY) -9.3%
Duolingo (DUOL) -5.5%
Redfin (RDFN) -5.2%
Sea Limited (SE) -5.1%
Match Group (MTCH) -5.0%
Here are the stories that you need to know ahead of market-open today, Friday the 14th of October
Apple Wants to Help You Save 💵
In the wake of inflation and consumers holding a record amount of cash, Apple (AAPL) has announced its intention to jump into the savings game.
Through a collaboration with Goldman Sachs, Apple cardholders’ Daily Cash, the company’s form of cash-back rewards, will automatically be stored in a high-yield savings account. There will be no fees, minimum deposits, or minimum balances, and users can easily manage and move their savings via the Apple Wallet app. It is unknown at this time what the interest rate will be but most analysts estimate somewhere between 2.20%-3.05%.
Currently, Apple cardholders earn 3% cashback on Apple Card purchases at plenty of merchants, including Apple itself, Uber/Uber Eats, Walgreens, Nike, and T-Mobile. While they earn 2% cash back anywhere they use Apple Pay.
In good news for avid savers, Apple’s new savings account will also allow users to add additional funds from a linked bank account at no cost.
Apple has not yet announced when the feature will premiere, merely saying it should be ready in the coming months and debut with the latest iOS release.
The venture is just the latest finance move from Apple which has also been developing a buy now, pay later (BNPL) product called Apple Pay Later. This will allow cardholders to split any purchase into four interest-free payments and is expected to drop in 2023.
It would appear personal finance will become an arm of Apple’s ever-growing services segment. With competitive features like BNPL and high-yield savings accounts, the tech giant should be able to attract more consumers to the Apple Card and Apple Pay, collecting plenty of fees along the way.
Netflix Finally Unveils Its Ad Plans 💰
Streaming platform Netflix (NFLX) has revealed that its eagerly anticipated ad-supported tier will cost $6.99 per month and will begin rolling out across the U.S. as of November 3. The tier — known as “Basic with ads” — will also place a number of other limitations on customers to distinguish it from Netflix's current more premium offering.
Users of this tier should expect to see between four and five minutes of ads on average each hour, with 15 and 30-second ads playing both before and during Netflix’s content. Users of the Basic with ads tier will also be limited to a resolution of 720p as opposed to the 1080p quality experienced on its standard plan. They also won't have the ability to download any movies of TV series, and some content won’t even appear on the platform at first due to licensing restrictions around the ad-supported tier.
Netflix has been adamant in previous years that an ad-supported tier was not in the company’s future, however slowing and even reversing subscriber growth prompted the firm into action. Chief Operating Officer Greg Peters outlined that “we want to offer consumers choice and figure out what the best offering is for them” when referencing the new tier and its pricing.
With Netflix expected to announce its third-quarter earnings next Tuesday, all eyes will be firmly fixated on the streaming company to see how it anticipates this move will affect its revenue over the next number of quarters. The company was boosted by over 5% yesterday as news around this and its ratings deal with Nielson hit the news, but it still remains down over 61% year-to-date.
Domino’s Surges As People Still Want Pizza 🍕
Domino’s Pizza announced its third-quarter earnings yesterday, and investors appear more than pleased by the results. The beloved pizza producer reported better-than-expected revenue, but did miss on earnings in what was by and large a mixed report. Investors saw the good in it, however, as they sent Domino’s stock soaring by over 10% yesterday.
Domino’s reported earnings per share (EPS) of $2.79 on revenue of $1.07 billion, with analysts expecting marks of $2.97 per share and $1.06 billion respectively. In the U.S., same-store sales rose by 2% as the company finally got to grips with an increased demand for its products. Outside of the U.S. though, overseas same-store sales fell by 1.8% as unfavorable foreign currency exchanges squeezed its profits.
Domino’s is a multinational pizza restaurant chain based out of Ann Arbor, Michigan. It operates over 18,800 stores in close to 90 different markets. While food is typically a safe industry in times of economic turmoil, Domino’s has struggled to hold its value of late. It’s currently down over 39% year-to-date, although some of its problems do appear to be lessening. While drastic measures might not yet be called for, investors will be keeping a close eye on Domino’s near-term performance.