Wednesday’s Headlines: Netflix Shocks Investors With Rare Miss
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Nautilus (NLS) +11.2%
Baozun (BZUN) +5.7%
iRobot (IRBT) +5.1%
Stitch Fix (SFIX) +4.8%
Wynn Resorts (WYNN) +4.0%
Moving Down ⬇️
Trupanion (TRUP) -7.3%
Twilio (TWLO) -6.1%
Zoom Communications (ZM) -5.5%
Evolent Health (EVH) -3.8%
1. ‘Stranger Things’ have happened than Netflix (NFLX) missing on earnings and new subscribers while beating revenue expectations in its Q3 earnings report, sending shares down 6% after-hours. Netflix posted earnings per share (EPS) of $1.74 versus $2.14 expected on revenue of $6.44 billion, which did manage to top analyst estimates, while net subscriber additions disappointed at 2.2 million. Back in Q2, Netflix warned shareholders about the inevitable slowdown of new paid subscribers after the coronavirus accelerated signups that would otherwise have happened later in the year, i.e Q3. Netflix confirmed that content production is almost back to normal, with 2021 unlikely to experience delays. Read the full story here.
2. Disney faces further challenges as California Law declared Disneyland parks in Orange County must stay closed for the foreseeable future. California Health Secretary Mark Ghaly stated that parks with more than 15,000 visitors posed too much of a threat during the coronavirus pandemic and must stay closed, with Disneyland California remaining the company's only unopened park. Despite this, its stock remains strong and is up 8% since August as analysts predict that Disney's (DIS) plan of reshuffling its entertainment sector to focus on improving its streaming service Disney+, will pay off. Check out the full story here.
3. Google (GOOG) is in hot water again as the Department of Justice (DOJ) filed its first-ever antitrust charges against the tech giant. The company is accused of paying Apple and other mobile manufacturers billions of dollars to ensure that Google’s search engine remains their smartphone's default search browser, blocking out competitors. Google defended itself and stated the case was deeply flawed, claiming that the suit "would artificially prop up lower-quality search alternatives, raise phone prices, and make it harder for people to get the search services they want to use." Google's stock is up 15% year-to-date (YTD). Read the full story here.
Elsewhere, 1 other MyWallSt stocks reported earnings:
Home robots are in demand as iRobot stock rallied 8% yesterday following a Q3 report that boasted a strong third quarter with losses per share of $0.10 on top of revenue of $1.36 billion. iRobot indicated that growth in the U.S market had helped its business, with its products remaining popular on Amazon Prime Day this month.