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Netflix’s quarterly results show subscriber decrease

Competition in this sector is growing as platforms such as Disney+, HBO Max and Amazon Prime increasingly attract more customers, check this guide for more

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As the main focus continues on business results in both the United States and Europe, during yesterday's session the market's attention was mostly focused on the Netflix results.

In April, these results were presented at the close of the market in which we could find a clear slowdown in the number of subscribers. On the other hand, during this second quarter we have been able to observe mixed results, since although revenues exceeded market expectations, earnings per share remained below expectations.

Specifically, Netflix earned an earnings per share of $2.97 per share with quarterly revenue of $7,340 million versus $3.18 per share and expected revenue of $7.3 billion.

The decline in subscribers can be explained by the "exhaustion" of users, due to the strong competition that exists in this sector and the end of the pandemic restrictions that ranged from home confinements to night curfews. Despite this decline in subscribers, Netflix has achieved a net profit of $3.06 billion during the first half of the year.

On the other hand, Netflix has confirmed its expansion into the world of video games, so it hopes to increase its customer base and revenue through this market, where it could create its own games based on its own productions.

Technically speaking, if we look at the daily chart, we can see that over the last few months the price has moved in a wide side range of about $100 wide between the green and red bands that act as the main resistance and support levels respectively. Currently the price is in the middle zone of that channel after falling back to its moving average of 18 blank sessions.

Source: Admiral Markets MetaTrader 5. Netflix daily chart. Data range: March 5, 2020 to July 21, 2021. Prepared on July 21, 2021 at 11:30 am CEST. Please note that past returns do not guarantee future returns.

 

Evolution of the last 5 years:

  • 2020: 67.11%
  • 2019: 20.89%
  • 2018: 39.44%
  • 2017: 55.06%
  • 2016: 8.24%

 

If we look at the hourly chart, we can see that this support level on the daily chart corresponds to the coincident zone between the 38.2% and 50% Fibonacci retracement levels of the last up front and its 200-period moving average in the red so we can confirm it is an important support point.

Source: Admiral Markets MetaTrader 5. Netflix hourly chart. Data range: March 1, 2021 to July 21, 2021. Prepared on July 21, 2021 at 11:40 a.m. CEST. Please note that past returns do not guarantee future returns.

 

In the first half of the year, Netflix has lost 2.32% and the loss of this support level, could cause a further correction in search of the next support levels around $510 per share, its moving average of 200 sessions red on the daily chart and $500 per share.

On the contrary, if the price manages to maintain this support level, we could find ourselves with new bullish momentum, although as we can see in the daily chart, it must face several resistance levels before reaching the upper band of the side channel.

With the Admirals Trade.MT5 account, you can trade Contracts for Differences (CFDs) on Netflix and more than 3000 stocks! CFDs allow traders to try to profit from the bull and bear markets, as well as the use of leverage. Click on the following banner to open an account today:

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The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following: 

  1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
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  3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
  4. The Analysis is prepared by an independent analyst, Roberto Rojas (analyst), (hereinafter “Author”) based on their personal estimations.
  5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
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Economics

How Inflation Impacts Penny Stocks and the Stock Market 

Use these tips for trading penny stocks with high inflation
The post How Inflation Impacts Penny Stocks and the Stock Market  appeared first on Penny…

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3 Ways That Inflation Impacts Investing in Penny Stocks

When it comes to trading penny stocks, investors need to know everything that is going on in the stock market. Inflation is a huge factor when it comes to penny stocks, especially in the past few months. When inflation rates are high, stocks become more expensive, and this can have a negative impact on the stock market. 

In order to make money with penny stocks, investors need to be aware of how inflation impacts the stock market so they can make the necessary adjustments to their investment. Now, while inflation is always a factor, over the last year or so, this has been dramatized due to the effects of the pandemic. And more recently, we have begun to see some positivity regarding inflation. 

[Read More] Best Penny Stocks To Buy? 4 EV Stocks To Watch Thanks To TSLA Stock

So, while we are in no way out of the woods yet, we have seen that inflation is the main contributor to market movement in the past couple of months. As a result, stocks have become more expensive, but we are seeing some relief from the inflation rates.

This is good news for investors, and it is something to keep an eye on in the coming months as we continue to see the effects of the pandemic play out. Considering all of this, let’s take a closer look at how inflation could continue to impact penny stocks moving forward.

3 Ways That Inflation Could Impact Penny Stocks

  1. Higher Volatility Than Usual
  2. Cheaper Penny Stocks to Buy
  3. Long Term Value

Higher Volatility Than Usual

We all know that volatility with penny stocks and blue chips has been higher than usual in the past few months. And, when we look at the reasons behind it, inflation is one of the key drivers.

What is inflation? It’s simply a sustained increase in the price level of goods and services in an economy. And while a little bit of inflation is actually good for stocks (it boosts company profits), too much inflation can lead to problems.

Why does inflation cause more volatility in stocks? Well, when inflation is higher than expected, it can lead to concerns about future economic growth. This can cause investors to sell stocks and move into investments that are perceived as being safer. This selling can lead to increased volatility in the stock market. In addition, we have movement due to panic selling and buying, which can exacerbate the problem.

[Read More] Best Penny Stocks to Buy As Inflation Drops, 3 to Watch 

So what can investors do to protect themselves from inflation-induced volatility? First, it’s important to keep a close eye on inflation data. If inflation is rising faster than expected, it may be time to take a closer look at your portfolio and make sure that you’re not too exposed to stocks.

Second, don’t forget that stocks are not the only investment option out there. There are plenty of other options, such as bonds and real estate, that can provide diversification and help protect your portfolio from inflation-induced volatility.

Cheaper Penny Stocks to Buy

When it comes to finding penny stocks to buy, inflation can lead to losses in the stock market. This means that many penny stocks can be bought up for less money, but they may not be worth as much when it comes to future earnings. Inflation can also make stocks harder to sell, since their prices are lower than what they were purchased for.

This can be frustrating for investors who are trying to make a profit in the stock market. Now, in the short term, these low values mean that stocks may be a good investment. However, over the long term, it is critical to see what happens with this value and whether or not it can be maintained. So, while finding cheap penny stocks to buy is more than doable, always remember the length of your investment goal.

Long Term Value

With many penny stocks trading at low prices, inflation can cause the stocks to go up in value over the long term. Inflation is often thought of as something that devalues money, and in a sense, it does. But inflation can also have a positive effect on stocks and other investments.

penny stocks value

For example, let’s say you buy a stock for $1 per share. Inflation rises, and the next year, the same stock is selling for $2 per share. The purchasing power of your dollar has decreased, but the value of your stocks has doubled. In this way, inflation can create long-term value in the stock market.

Of course, inflation is not the only factor that affects stocks. The overall performance of the stock market is also influenced by economic conditions, company earnings, and many other factors. However, over the long term, inflation can have a positive effect on penny stocks if you understand where that value is.

3 Penny Stocks to Watch This Coming Week

  1. Aquestive Therapeutics Inc. (NASDAQ: AQST)
  2. Edgio Inc. (NASDAQ: EGIO)
  3. Comstock Inc. (NYSE: LODE)

Which Penny Stocks Are You Watching Right Now?

If you’re looking for penny stocks to buy, there are hundreds to choose from. But how do you know which penny stocks are worth your investment? There are a few things to look for when considering penny stocks. The first thing to consider is what your trading strategy is and how to take advantage of penny stocks. 

[Read More] 5 Top Penny Stocks To Watch Today With High Short Interest

Are you looking for stocks that are undervalued and have the potential to make a quick profit? Or are you looking to hold onto stocks for the long haul? While it is not easy to trade penny stocks, it can be much simpler with the right information on hand. Considering that, which penny stocks are you watching right now?

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The post How Inflation Impacts Penny Stocks and the Stock Market  appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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Stocks

Peloton reveals new measures to cut costs

Peloton Interactive Inc (NASDAQ: PTON) is up 15% on Friday after the connected fitness company made a string of announcements that reiterated its commitment…

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Peloton Interactive Inc (NASDAQ: PTON) is up 15% on Friday after the connected fitness company made a string of announcements that reiterated its commitment to “profitability”.

Peloton is cutting jobs

The Nasdaq-listed firm says it will cut 780 jobs (including in-house support team) and shutter an undisclosed number of retail locations to minimise costs. It also partnered with 3rd party providers to quit last-mile logistics. In a memo to employees, CEO Barry McCarthy wrote:

The shift of our final mile delivery to 3PLs will reduce our per-product delivery costs by up to 50%. These expanded partnerships mean we can ensure we have the ability to scale up and down as volume fluctuates.

Once a pandemic darling, the Peloton stock is currently down more than 65% versus its year-to-date high in early February. Still, Wall Street currently has a consensus “overweight” rating on PTON.

Peloton is raising prices

Store closures, as per Peloton, will start in 2023. On top of that, the fitness equipment manufacturer announced a $500 and $800 increase in the price of its Bike+ and Tread, respectively.

Earlier this year, PTON terminated in-house production and doubled down on its agreement with Taiwan-based Rexon Industrial. CEO McCarthy has been announcing these moves since he joined in February to put the company on the path to profitability.

Peloton Interactive is expected to report its results for the fiscal fourth quarter on August 25th. Consensus is for it to lose 71 cents a share (unchanged from last year) on $722 million in revenue (down 23% year-over-year).  

The post Peloton reveals new measures to cut costs appeared first on Invezz.

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Economics

Best Stocks to Buy in August 2022

The markets have seen positive growth over the past month. That being said, the best stocks to buy in August will see much greater returns.
The post Best…

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Stocks rose again today as the S&P 500 had its fourth positive week in a row, gaining 0.6%. The DJIA (Dow Jones Industrial Average) rose about 0.5% and Nasdaq 0.7%. That being said, the best stocks to buy in August 2022 will see much greater returns. Is the bear market run finally over? Is this a sign that inflation is slowing down?

At the beginning of 2022, the S&P 500 was trading at just under $4,800. And since a June low of $3,600, the S&P 500 has recovered quite nicely, now reaching over $4,200 and climbing. The Nasdaq has seen similar results, increasing 14.5% in the past month alone.

But with all of this increased market activity, where should investors be looking? For the answer, we looked to our very own IU Einstein’s latest picks for the best stocks to buy in August 2022.

The Best Stocks to Buy in August 2022

Technical Options Expert Bryan Bottarelli on the best stocks to buy in August 2022…

Bryan BottarelliStarbucks (Nasdaq: SBUX)

Last week, Starbucks released quarterly results, which beat estimates on the top and bottom lines. Specifically…

  • Revenues of $8.15 billion beat the expectation of $8.14 billion.
  • Adjusted earnings per share (EPS) of $0.84 beat the expectation of $0.76.
  • U.S. same-store sales growth of 9% beat the expectation of 8.85%.

So you have a company that’s outperforming in the midst of a multitude of pressures – including 40-year inflation highs, a recession risk, rising labor costs and unionization efforts.

Despite the risk of consumers pulling back on discretionary spending, “Starbies” (as my daughter calls it) continues to grow.

Read the full article here

Chief Investment Expert Alexander Green on the best stocks to buy in August 2022…

Alexander Green – Follow the Insiders

One of the best strategies you can follow is to ride the coattails of knowledgeable insiders.

Why? Because they have access to all sorts of material, non-public information, like…

  • The direction of sales since the last quarterly report
  • New products and services in development
  • Any expansion plans
  • Potential mergers and acquisitions
  • Whether the company has gained or lost any key customers
  • The status of outstanding litigation
  • Whether the company will put itself up for sale
  • Plans to take the company private

… And plenty of other good stuff unavailable to those of us on the outside looking in.

Read the full article here

Income Expert Marc Lichtenfeld on the best stocks to buy in August 2022…

Marc Lichtenfeld – Beaten-up stocks (with dividends)

Technical analysis – the use of stock charts to analyze the markets and individual stocks to inform buy and sell decisions – is great for creating a trading plan.

As I always say, technical analysis is not a crystal ball. But it does help you increase the chances of being right and, just as importantly, minimize your losses when you’re wrong.

Everyone’s trading style is different, and there are lots of technical analysis tools that fit any individual’s preferred method.

As a long-term investor, I’m a value investor. I like to buy beaten-up stocks (with dividends) and watch them bounce back over time.

So it’s no surprise that, as a trader, I do the same thing – just with a much shorter time horizon.

With the goal of entering a trade at a discount, I may buy a stock that’s predominantly moving up a trend line and yet has momentarily returned to support – the price level at which a stock’s downtrend reverses.

Read the full article here

Fundamental Options Expert Karim Rahemtulla on the best stocks to buy in August 2022…

Karim RahemtullaFord Motor (NYSE: F)

The company just released earnings, which came in better than expected.

Then it let investors in on a couple pieces of news that bolstered the case for investing in the company.

Here is the important information…

  • Ford is increasing its dividend to $0.15 per share, which will bring the company back to pre-pandemic levels.
  • The company sees the Ford+ plan as the biggest opportunity since the scaling of the Model T.
  • Demand for EVs is overwhelming, and the company has strong multiyear order banks.
  • More than 3,000 electric E-Transit Vans were sold in the second quarter, giving the company a 95% share of the electric van market.

Read the full article here

The Best Stocks to Buy in August 2022 – Summarized

As you can see, our Einstein’s follow insider activity, beaten-up stocks with dividends and even solid retail or EV buys. The market may not be out of the woods yet, but with the positive sentiment growing, we could see even more increases. After all, if you’re in it for the long haul, why not get in at a discount? The best stocks to buy in August may not be this cheap for long. For all the latest investment information, sign up for one of the best investment newsletters on the planet today.

The post Best Stocks to Buy in August 2022 appeared first on Investment U.

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