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...
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| Wall Street market back on track as oil gain |
Brent crude hovered above $40 a barrel on Wednesday.
However, industry watchers remain skeptical of a sustained recovery in prices due to the oversupply.
Reuters reported that at 9:37 a.m. ET, the Dow Jones industrial average was up 45.78 points, or 0.27%, at 17,009.88, the S&P 500 was up 6.14 points, or 0.31%, at 1,985.4 and the Nasdaq Composite index was up 7.63 points, or 0.16%, at 4,656.46.
Markets worldwide were lower on Wednesday as investors fretted about global economic conditions ahead of central bank meetings on monetary policies. This was largely due to the disappointing data coming out from China.
US economy may seems to have find its footing with the recent data and reports but Asia and Euro zone are not looking so positive with a faltering growth outlook.
According to a news report from Reuters, the European Central Bank, which will meet later this week, is expected to increase its stimulus program. While the U.S. Federal Reserve is not expected to raise interest rates at its meeting on March 15-16, the central bank has said it is on track to raise rates gradually this year.
The gainers on New York stock exchange outnumbered decliners by 2,076 to 542 while 1,576 counters rose and 582 fell on the Nasdaq.
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