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...
KUALA LUMPUR (Jan 17): The FBM KLCI rose 4.19 points or 0.3% on bargain hunting, after the index's 13.66-point drop yesterday. The KLCI fell yesterday on renewed concerns on the UK's planned exit from the European Union (EU) and after China shares dropped sharply.
The UK's planned exit from the EU is popularly known as Brexit. The KLCI also dropped on news JP Morgan downgraded the Malaysian stock market to "neutral", from "overweight".
Today, the KLCI closed at 1,663.03 points. Inter-Pacific Research Sdn Bhd research head Pong Teng Siew told theedgemarkets.com that the KLCI's decline yesterday was an opportunity for bargain hunting by institutional investors.
“The underlying sentiment is still bullish. Liquidity will improve, but I don’t think it will last past late February or March. The market is cautious,” Pong said.
Today, Bursa Malaysia saw 1.99 billion shares, worth RM1.68 billion, traded. There were 411 gainers and 366 decliners.
World markets have been taking cue from Brexit concerns. Reuters reported the pound hovered near three-month lows versus the dollar on Tuesday, and stocks were mostly weaker as investors waited for British Prime Minister Theresa May to lay out plans to exit the EU, amid fears Britain will lose access to the single market.
Safe-havens such as the yen, gold and treasuries, gained in turn.
Source: The Edge
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