Netflix’s (NFLX) global streaming paid membership base grew 25.2% YoY (year-over-year) in the first quarter. Meanwhile, its total revenue rose ~22% in the quarter, or 28% YoY excluding currency headwinds. However, its ARPU (average revenue per user) fell 2% due to currency exchange rates. Netflix’s operating margin exceeded its expectation and reached 10.2%, as some content spending was shifted to the later half of the year.
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Netflix forecasts accelerated streaming ARPU and revenue growth in the second quarter, with its ARPU growing 2% and its revenue increasing 26% (or 7% and 32%, respectively, excluding currency headwinds). The company expects its operating margin to strengthen in the second half of the year and forecasts an operating margin of 13% in fiscal 2019.
However, Netflix expects its paid net additions to drop 8% YoY to 5 million in the second quarter, mainly due to weak US growth. Netflix expects US and international subscriber additions of 0.3 million and 4.7 million, respectively, in the quarter.
Several big players’ entry into the streaming space is expected to hurt Netflix’s subscriber base. Walt Disney (DIS), Apple, and AT&T’s (T) WarnerMedia are set to launch services this year, while Comcast’s (CMCSA) NBCUniversal is set to launch services in 2020. According to Research and Markets, paid video-on-demand subscriptions are expected to reach ~777 million globally by 2023.
The VanEck Vectors Semiconductor ETF (SMH) hit a new 52-week high of $118.83 on April 17, driven by a more-than-20% increase in Qualcomm's (QCOM) stock and more-than-5% increase in Intel's (INTC) stock.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.