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 (March 6): The FBM KLCI closed up 1.2 points or 0.07% today while small market capitalisation (small cap) stocks rose by a larger quantum amid a rotational play from big cap equities to smaller entities across Bursa Malaysia.
At 5pm, the KLCI closed higher at 1,686.82 on bargain hunting while Bursa Malaysia's small cap index rose 158.29 points or 1.24% to 12,884.98. The KLCI saw bargain hunting after losses in recent days on China's economic growth forecast revision and as investors sold Malaysian shares after analysts said corporate earnings for 2018's fourth quarter were weak and disappointing.
Today, TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com: “There is some rotational play going on mainly on the small cap companies for sectors such as oil and gas.”
Such sentiment helped Bursa Malaysia register a larger share trade volume and value today compared with a day earlier. Today, share trade volume rose to 3.16 billion units worth RM2.53 billion from yesterday's 2.57 billion shares valued at RM2.11 billion.
Today, the most active stocks included MY E.G. Services Bhd (MYEG) and Sapura Energy Bhd with share trade volumes at some 264 million and 202 million respectively. MYEG closed up 18 sen at RM1.19 while Sapura Energy rose 0.5 sen to 32 sen.
Globally, China markets were closely watched after shares there closed higher amid hopes the country will pursue more stimulus this year to support the cooling economy as investors evaluated China-US trade talks.
The Shanghai Stock Exchange Composite closed 1.57% higher while Hong Kong's Hang Seng finished up 0.26%. Elsewhere across Asia, Japan's Nikkei 225 shed 0.6% while South Korea's Kospi fell 0.17%.
Reuters reported that Asian stocks held their ground on Wednesday as Chinese equities rallied on stimulus hopes, although a resurgence in regional tensions capped broader gains with North Korea opting to restore part of a missile test site it had started dismantling earlier.
Source: The Edge
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