We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.56%, while traders in US 500 are at opposite extremes with 67.46%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/XboitD6oGi
  • The $AUD came into the New Year clinging to a very visible bullish trend. While the currency had a rather rough first nine months of last year. Get your AUD/USD technical analysis from @JStanleyFX here: https://t.co/HrLlgqvibu https://t.co/efoZc6VjGC
  • The US #StockMarket is on pace to close markedly lower to start the week with less than 30-minutes left in today's #trading session as #Coronavirus fears roil Wall Street S&P 500: -1.46% Dow Jones: -1.45% Nasdaq: -1.80% Russell 2K: -0.73% VIX: +22.25% $SPX $DJI $NDX $RUT $VIX
  • #Bitcoin Daily Pivot Points: S3: 7768.5 S2: 8055.53 S1: 8177.32 P: 8342.56 R1: 8464.35 R2: 8629.59 R3: 8916.62
  • The #Dow Jones remains elevated as tech and defensive sectors underpin the index. However, we see caution in chasing the market higher amid rising risks of a potential correction. Get your market update from @JMcQueenFX here:https://t.co/3klcZ6CHpe https://t.co/3xvxNNWb2O
  • RT @MarketWatch: Economic hit from coronavirus likely to be short lived, but it’s still ‘a little scary, frankly’ https://t.co/NyB3DCRpGS
  • Know the Slope. . . $SPX500 Daily - https://t.co/FoBtqk9CYA https://t.co/nkmzVkx5p6
  • $EURUSD Daily Pivot Points: S3: 1.095 S2: 1.0993 S1: 1.1009 P: 1.1035 R1: 1.1051 R2: 1.1078 R3: 1.112
  • $AUDUSD has been my favored pair to pick on for $USD strength scenarios. RBA is next week, potential for losses still there. But can sellers break-through that .6700 handle that proved so tough to break last year? https://www.dailyfx.com/forex/fundamental/article/drivers_of_price_action/2020/01/27/australian-dollar-price-analysis-aussie-crushed-js-audusd-aud-usd-nears-6700.html https://t.co/DhGJRHFssC
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Gold: 0.47% Oil - US Crude: -0.13% Silver: -0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/JhDhC307cu
Netflix Stock Price Slides After Earnings, S&P 500 Sentiment Dented

Netflix Stock Price Slides After Earnings, S&P 500 Sentiment Dented

2019-04-16 21:30:00
Peter Hanks, Junior Analyst
Share:

Netflix Stock Price Talking Points:

  • Netflix’s miss may prove troublesome for S&P 500 sentiment as the stock often serves as a bellwether for the tech sector
  • IBM also missed analyst’s expectations, but pared losses as the after-hours session progressed
  • Interested in stock market sentiment? See how IG Clients are positioned on the S&P 500 with Retail Sentiment Data and sign up for one of our Sentiment Walkthrough Webinars to learn more about the tool

Netflix Stock Price Slides After Earnings, S&P 500 Sentiment Dented

Netflix (NFLX) released first quarter earnings after the close Tuesday, beating analyst expectations on both revenue and earnings per share. As the report was digested further however, future cash flow related to subscriber growth concerned investors and the stock traded nearly 8% lower immediately after release. As the after-hours session unfolded, Netflix shares recovered – down about 1.5% at the time of this article’s publication.

Netflix Stock Price After Earnings

netflix stock price after earnings

Netflix’s reported first quarter revenue was $4.52 billion, equating to $0.76 earnings per share – notably higher than the expected $0.58. Still, the strong financials were not enough to outweigh the troublesome outlook for subscriber growth. While the streaming service added an impressive 9.6 million subscribers in the most recent quarter, second quarter additions were forecasted at only 5 million – beneath Street expectations of 6.09 million. Worrisome subscriber forecasts coincide with a new entrant to the streaming space – Disney. The impact of heightened competition will likely be of headline concern in future releases.

Alongside Netflix, International Business Machines Corporation (IBM) reported first quarter earnings but failed to meet revenue guidance and subsequently slipped in after-hours trading. Like Netflix, the stock pared initial losses as the report disseminated throughout the market.

Netflix stock price

Option traders anticipated notable volatility from both Netflix and IBM – something not uncommon for the former. That said, NFLX and IBM look to trade within the expected price range heading into Wednesday’s session. In the coming weeks however, Netflix’s implied volatility will remain heightened. As the first FAANG member to report earnings, the stock is often looked to as a bellwether for tech sentiment and a barometer for general equity sentiment. Once other tech stocks report, Netflix will likely find itself tied to the performance of the sector.

With the conclusion of bank earnings on Wednesday, tech will take the stage as the next key industry to watch as the season progresses. In the social media space, Twitter and Snapchat report next Tuesday. Following their reports, Facebook and Microsoft will report after next Wednesday’s close. Follow @PeterHanksFX on Twitter for earnings season coverage. In the interim, the S&P 500 and Dow Jones will look to Chinese GDP – due to be released early Wednesday.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more: Dow Jones, S&P 500, DAX 30, and FTSE 100 Technical Forecast

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.