Contents
Netflix drops 25%, pushing NASDAQ lower
The NASDAQ was trading lower to end the week, as Netflix stock plunged in the aftermath of a disappointing earnings call.
Netflix, which reported its Q4 earnings after yesterday’s closing bell, beat on earnings, however disappointed in terms of subscriber growth.
The streaming giant reported that Q4 revenue came in at $7.71 billion as markets had expected, with earnings per share of $1.33 vs 82 cents.
Despite this, paid subscriber growth came marginally higher at 8.28 million vs 8.19 million, however markets were disappointed as the figure was lower than at the same period last year, where 8.5 million subscribers were added.
As of writing, the NASDAQ was down 2.18%, with $NFLX trading 23% lower.
DAX 30 falls, as Lagarde hesitant of ECB rate rise
In Europe, Germany’s DAX 30 was also lower on Friday, as ECB President Christine Lagarde downplayed the EU’s inflation woes.
Speaking via a video link during the WEF Davos annual meeting, she stated that Europe doesn’t seem to have the same level of “excessive demand” as the United States.
| 💡 Words from Lagarde: “I think those two factors, if you look at them carefully, are clearly indicating that we’re not moving at the same speed, and we’re unlikely to experience the same kind of inflation increases that the U.S. market has faced.” |
She then added that, “We have a forward guidance which is pretty solid. And we will act — there’s no question in my mind that once the criteria are satisfied, we will. But at the moment they’re not satisfied”.
Out of the major central banks across the globe, the ECB has so far been the most reluctant in pushing for early rate hikes in 2022.
The DAX 30 closed 1.94% on the news, with EURUSD climbing to an intraday high of 1.1359.
Peloton rebounds, after falling 25% on Thursday
shares in Peloton climbed by double digits on Friday, as traders flocked back into the stock, after a selloff the day before.
Peloton, which produces home-based workout equipment rebounded in today’s session, after falling by almost 25% during trading on Thursday.
Yesterday, the company announced that it would be halting production on some of its biking products, as post-covid demand has significantly fallen.
| 💡Apple to buy Peloton? As per a report on the Motley fool, Apple has many reasons to buy Peloton. They proved they are willing to make big purchases to move into a different industry (Beats acquisition in 2014). Apple is in the midst of making a big push in the health and wellness space and Apple knows all about hardware differentiated by software. See the full article by clicking here |
This led to its price falling below its IPO rate of $29 per share and led many to speculate if the stock was only inflated as a result of product demand during lockdown.
On Friday, traders somewhat answered the call, and bought the dip, with the company’s share price 13.17% higher as of writing.
“The intelligent investor is a realist who sells to optimists and buys from pessimists.”
– George Soros –
