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...
Pre-Market Highlights: Stocks Making Big Moves
Gapping Up
- Poseida Therapeutics (PSTX):Stock skyrocketed over 200% after Roche announced its acquisition for up to $1.5 billion in cash.
- Novo Nordisk (NVO) and Eli Lilly (LLY):Shares of these weight-loss drug makers rose 2.1% and 4.9% respectively after President Joe Biden proposed expanding Medicare and Medicaid coverage for anti-obesity drugs.
- Arqit Quantum (ARQQ):Stock climbed 4% in pre-market trading following a 37% surge yesterday, driven by Amazon's new Quantum Embark Program, which aims to integrate quantum computing with AI.
- Dick’s Sporting Goods (DKS):Shares jumped 8.2% after the company raised its full-year outlook. CEO Lauren Hobart credited an “excellent” back-to-school season and better-than-expected Q3 sales for the positive forecast.
- Intel (INTC):Shares rose 0.4% as the US government confirmed $7.86 billion in subsidies, slightly below the original $8.5 billion plan. Intel also secured $3 billion from the Pentagon.
- Analog Devices (ADI):Stock gained 5.6% despite reporting lower year-over-year Q4 profits. Results still outperformed analyst expectations.
Gapping Down
- Kohl’s Corp (KSS):Shares plunged 17% as the company lowered its annual sales forecast following its 11th consecutive quarter of declining sales. Same-store sales dropped 9.3%, raising concerns about its ability to attract holiday shoppers.
- Best Buy (BBY):Stock dropped 7% after reporting disappointing Q3 results and lowering its full-year sales outlook. Comparable sales fell 2.9%, with weak demand in appliances, home theater, and gaming categories.
- MicroStrategy (MSTR) and Coinbase (COIN):Shares declined 5% and 4.4% respectively as Bitcoin prices fell to $92,000, down 5% in a single day. Long position liquidations totaled $413 million
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