An Hour Ago
Why Netflix’s weak revenue guidance might not be too concerning
Netflix‘s third-quarter revenue guidance is a bit light at $9.73 billion vs. the $9.82 billion expected by Wall Street.
That might not be too problematic for investors though. Lately, it has not been unusual for the streaming company to give a revenue forecast that initially undershoots analyst estimates. In its previous 4 quarterly reports, Netflix gave a forecast that was below the consensus estimate at the time – only to post revenues that were either in line or a beat three months later. Additionally, in each of those earnings reports, Netflix’s actual revenue figure wound up being higher than the company’s initial guidance.
This comes as Netflix is pushing its revenue metrics more – and by next year, it’ll no longer provide subscriber figures as the company leans more on its advertising model. Another sign that its ad-supported plans are becoming increasingly important: in this afternoon’s report, Netflix said it will begin phasing out its ad-free basic plan in the U.S. and France after doing so already in the U.K. and Canada.
— Robert Hum
An Hour Ago
Dow, small caps head for winning week
Here’s where the top indexes stand with one session left in the week:
- The S&P 500 is down 1.26% week to date, on pace for its worst week since April.
- The Dow is up 1.66% week to date, on pace for its third positive week in a row.
- The Nasdaq Composite is down 2.87% week to date, on pace to break a six-week winning streak.
- The Russell 2000 is up 2.33% week to date, on pace for its fourth positive week in five.
— Jesse Pound, Christopher Hayes
An Hour Ago
Small-cap rotation could last a few more weeks, Saira Malik says
The rotation into small-cap stocks may not be done just yet, according to Nuveen’s Saira Malik.
“History tells you, on average, this kind of rotation lasts about four weeks,” the firm’s chief investment officer told CNBC’s “Closing Bell.” “What could derail it is tech earnings in a couple of weeks, but the bar is high.”
Malik also said that small caps’ outperformance could be discontinued in September around the time the Federal Reserve potentially cuts interest rates.
While the Russell 2000 moved nearly 2% lower in Thursday’s session, it’s up about 8.6% in the last one month, more than 8 times the gains of the S&P 500 in that period.
On Tuesday, the index saw its fifth straight day of gains. This marked the fifth time since 1979 that it had a five-day streak of gains of at least 1%, per Bespoke Investment Group.
See Chart…
Russell 2000, 1-month
2 Hours Ago
Health-care sector posts worst day since September 2022
The health-care sector of the S&P 500 slid 2.29% on Thursday for its worst session since September 2022.
Health care, normally deemed a defensive play for investors, was also the worst performer among the 11 sectors of the S&P 500. Energy was the only positive sector amid Thursday’s sharp sell-off.
2 Hours Ago
Netflix, Intuitive Surgical headline after hours movers
Earnings reports were driving stock moves in extended trading Thursday.
Shares of Netflix were volatile after the streaming video giant’s second-quarter report topped expectations but included underwhelming revenue guidance. Meanwhile, shares of Intuitive Surgical rose more than 6% after the biotech company beat estimates on the top and bottom lines.
Check out more about after hours movers here.
— Jesse Pound
2 Hours Ago
Futures open little changed
Stock futures were mostly unchanged at 6 p.m. in New York. Futures for the Nasdaq 100 were up more than 0.2%, while futures for the Dow and S&P 500 were closer to flat.
— Jesse Pound