Markets climbed on Friday
The stock prices of some of the big tech stocks as well as the broader market indexes climbed on Friday amid positive signals related to a potential settlement of the US-China (FXI) trade war. Also, investors got more hints that the Federal Reserve will be flexible on interest rates, which added to the market rally. Earlier on January 4, Federal Reserve chair Powell hinted at easing the future interest rate hikes. The Dow Jones Industrial Average gained around 1.38%, while the S&P 500 and the tech-driven Nasdaq Composite grew about 1.32% and 1.03%, respectively, on January 18. Despite optimism pushing up the broader market indexes, Netflix (NFLX) stock fell almost 4% on Friday.
Netflix’s stock price movement
Netflix’s stock price decline came as investors were disappointed with the streaming giant’s soft fourth-quarter results on January 17, 2019, after the closing bell. The online video streaming company failed to meet investors’ expectations on revenues in the reported quarter and projected weak revenue forecast for the next quarter.
Nevertheless, the stock was up 0.4% last week on the company’s announcement of a price hike on Tuesday. On a year-to-date basis as of January 18, Netflix stock gained 49%. In fact, among the so-called FAANG group of media and Internet companies, which consist of Facebook (FB), Amazon (AMZN), Apple, Netflix, and Alphabet’s (GOOGL) Google, only Netflix and Amazon have gained on a YTD basis. While Amazon stock was up 27.8% YTD, Facebook, Apple, and Alphabet declined 19.1%, 10%, and 4.9%, respectively, in the same period.