Netflix shares fell more than 8% in after-hours trading , as a disappointing second-quarter outlook and leadership changes outweighed otherwise solid first-quarter results. Weak Guidance Sparks Sell-Off Netflix forecast Q2 earnings of US$0.78 per share , below analyst expectations of US$0.84 , while revenue is projected at US$12.57 billion , missing the US$12.64 billion consensus . The weaker guidance raised concerns over near-term growth momentum , triggering a sharp negative market reaction. Strong Q1 Performance Fails to Impress For the first quarter: Revenue rose 16% YoY to US$12.25 billion (above estimates) Earnings surged 86% to US$1.23 per share However, earnings were boosted by a US$2.8 billion one-off termination fee , reducing the quality of underlying growth. Operating margin improved to 32.3% , but still came in below expectations (32.4%) , further dampening sentiment. Rising Costs and Strategic Sh...
It seems like it's destined to be another day of disappointment for Wall Street but a late rally helps US Down Jones and the S&P 500 to go back to green. The Nasdaq remains weaker, but was way better than the day's low.
As the USD weakened, investors were quick to act on it and this help to snapped a two days oil rout. Russia's foreign minister's comments also reignited hopes of a deal among oil producers to trim output. The energy index jumped on this news.
The battle to be the most valuable company continues as Alphabet shares tumbled 4% to US$749.38, with Apple regaining the position in terms of market capitalization. Apple rose 2% to US$96.35.
The Dow Jones industrial average .DJI ended up 183.12 points, or 1.13 percent, to 16,336.66, the S&P 500 .SPX gained 9.5 points, or 0.5 percent, to 1,912.53 and the Nasdaq Composite .IXIC dropped 12.71 points, or 0.28 percent, to 4,504.24.
Stocks' late-day rally reversed sharp losses in morning trading. U.S. data showed the economy's service sector expanded at a slower-than-expected rate, raising concerns that weakness in manufacturing was spreading to other areas of the economy.
In other economic news, ADP data showed private employers added more jobs than expected in January. The data comes ahead of the government's more comprehensive employment report on Friday.
Tepid U.S. growth, falling oil prices, and fears regarding a China-led global slowdown have combined to drive stocks down sharply since the start of the year.
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| Wall Street Update |
As the USD weakened, investors were quick to act on it and this help to snapped a two days oil rout. Russia's foreign minister's comments also reignited hopes of a deal among oil producers to trim output. The energy index jumped on this news.
The battle to be the most valuable company continues as Alphabet shares tumbled 4% to US$749.38, with Apple regaining the position in terms of market capitalization. Apple rose 2% to US$96.35.
The Dow Jones industrial average .DJI ended up 183.12 points, or 1.13 percent, to 16,336.66, the S&P 500 .SPX gained 9.5 points, or 0.5 percent, to 1,912.53 and the Nasdaq Composite .IXIC dropped 12.71 points, or 0.28 percent, to 4,504.24.
Stocks' late-day rally reversed sharp losses in morning trading. U.S. data showed the economy's service sector expanded at a slower-than-expected rate, raising concerns that weakness in manufacturing was spreading to other areas of the economy.
In other economic news, ADP data showed private employers added more jobs than expected in January. The data comes ahead of the government's more comprehensive employment report on Friday.
Tepid U.S. growth, falling oil prices, and fears regarding a China-led global slowdown have combined to drive stocks down sharply since the start of the year.
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