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...
Singapore shares opened slightly lower on Friday, even as US tech stocks surged to fresh highs, with investors balancing AI-driven optimism against geopolitical and trade uncertainties.
STI Edges Lower Amid Mixed Market Breadth
The FTSE Straits Times Index slipped 0.12% to 5,001.82 in early trade.
Market breadth was mixed:
- Advancers: 88
- Decliners: 79
This reflects a cautious tone, despite strong global cues.
Wall Street Hits Record Highs on AI Momentum
US equities extended their rally, led by technology stocks:
- Nasdaq Composite +0.4% (record high)
- S&P 500 +0.3% (record high)
- Dow Jones Industrial Average +0.2%
The Nasdaq marked its 12th consecutive gain, its longest streak since 2009.
The rally was driven by AI-related developments, led by Advanced Micro Devices, which surged 7.8% after securing a French government AI deal.
Other tech gainers included Oracle, Microsoft, and Super Micro Computer.
Singapore Pushes Back on US Trade Scrutiny
Singapore responded to US concerns under Section 301 trade rules, stating that its policies are:
- Not discriminatory
- Do not harm US commercial interests
The move reinforces the strength of the US-Singapore Free Trade Agreement (USSFTA) and highlights ongoing trade tensions despite strong bilateral ties.
Consumer Trends: Blind Box Demand Remains Resilient
Proposed regulations requiring probability disclosures for blind box products are unlikely to significantly impact demand.
- Core consumers already understand low odds
- Market expected to grow from S$70M (2025) to S$170M by 2034
This suggests continued growth in niche consumer segments, even amid tighter regulations.
Stocks to Watch
- Frasers Logistics & Commercial Trust acquired a €43M logistics asset in the Netherlands, expected to boost DPU
- Yangzijiang Maritime is expanding fleet with VLCC acquisitions, supporting long-term earnings
- MoneyMax Financial plans a S$44.3M share placement, indicating capital raising activity
- Keppel REIT (KORE) reported 4.3% YoY growth in distributable income, supported by stronger rental performance
Investor Takeaways
- Singapore equities opened slightly lower, reflecting cautious sentiment despite global gains.
- US tech stocks continue to lead markets, driven by AI investment momentum.
- Trade tensions remain a risk, with Singapore addressing US scrutiny under Section 301.
- REITs and shipping stocks show corporate activity, offering selective opportunities.
- Investors should monitor AI trends, geopolitical developments, and trade relations as key drivers.
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