Wednesday’s Headlines: Netflix Smashes 52-Week High Despite Coronavirus Fears
1. Netflix's stock price went against the grain of a wider market slump on Tuesday, smashing fresh 52-week highs in the process. Netflix’s stock price peaked at $389.40 for a gain of 2.4% and eventually settled up 1.9% at $387.78, its highest level since June 2018. Netflix faces intense competition in the online video streaming market, but its Q4 results showed a healthy pace of new subscribers added. Read the full story here.
2. Shares in Tesla rose more than 7% on Tuesday to bring it above $850, after Bernstein analyst Toni Sacconaghi nearly doubled his price target, saying he didn’t see any negative catalysts on the horizon for a stock that wasn’t especially expensive. Sacconaghi raised his stock price target to $730, which is still about 15% below current levels, from $325. Tesla’s stock has run up 178% over the past 12 months, while shares of rival General Motors and Ford have fallen 12% and 5.7% respectively. Get the full report here.
3. Just five stocks — Facebook, Amazon, Apple, Microsoft, and Alphabet — account for the S&P 500′s year-over-year EPS growth, Goldman Sachs reported on Tuesday. The “FAAMG” club accounts for 18% of the total S&P 500 value, while the last time there was such high concentration among just 5 names was during the tech bubble. All five stocks are also outperforming the broader market this year, with Microsoft leading the way after gaining more than 18%, compared with the S&P 500′s 4% rise. Read here for the complete report.