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đ€© Thatâs Showbiz
Plus, an update on Tesla's humanoid robots
Happy Monday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.
đ© | US Stocks Rose on Monday. The S&P 500 rose by 1%, and the Nasdaq Composite rose by roughly 2% as tech stocks bounced back from last weekâs sell-off.
đ | One Notable Gainer: Shares of Tellurian rocketed 68% higher after Woodside Energy agreed to purchase the troubled natural gas exporter for $900 million.
đ | One Notable Decliner: Ryanairâs stock plummeted 15% after the budget airline reported a whopping 46% drop in quarterly profit in the three months ending in June.
đ€© | Tomorrow's Trade: Thatâs Showbiz. Scroll down for more.
Plus, claim your free strategy guide to trade earnings season with todayâs partner.
LAST FRIDAYâS POLL RESULTS
đ©đ©đ©đ©đ©đ© Bullish
đšđšâŹïžâŹïžâŹïžâŹïž Bearish
S&P 500 Heatmap. Credit: Finviz
All Stock Heatmap. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
VAR1 (-69%) Vartaâs stock plunged after the battery maker said its restructuring options would leave shareholders with nothing (Reuters)
AMC (+5%) Shares of AMC Entertainment popped after it announced a deal to restructure its debt load (Benzinga)
TSLA (+5%) Teslaâs stock rose after Elon Musk announced the company would have humanoid robots in âlow productionâ for internal use by next year (YF)
MAT (+15%) Shares of toy maker Mattel rallied on news of an acquisition offer from private equity firm L Catterton (MW)
ON (+7%) ON Semiconductor saw its shares surge after striking a deal with Volkswagen to help its EVs go further on a single charge (Barronâs)
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OVERHEARD ON THE STREET
CNN: Thousands of Disneyland workers are voting to potentially authorize a strike, which would mark the first strike in 40 years.
Forbes: Microsoft has released a free tool to help people recover from the faulty CrowdStrike update that led to one of the biggest IT disasters to date.
WSJ: In other CrowdStrike news⊠CrowdStrikeâs CEO is warning that hackers are trying to exploit the cyber outage.
CNBC: The âTrump tradeâ could unwind after President Joe Biden withdrew from the 2024 presidential election.
TH: Elon Musk announced that heâs building the âworldâs most powerful AI by every metricâ using 100,000 liquid-cooled Nvidia H100 GPUs.
TOMORROWâS TRADE IDEA, TODAY
A Cheaper Option
Netflix (NFLX) debuted cheaper ads-included subscription options in November 2022, and theyâre becoming increasingly popular.
According to the streaming companyâs Q2 report, 45% of new subscribers opted for ad-supported plans when available.
A Small Piece of the Pie
Even with this momentum, advertisers havenât exactly been flocking to Netflix. The entertainment giant brought in around $800 million in ad revenue through the first half of 2024. That might seem like a large figure, but itâs only 4% of Netflixâs total revenue.
Now, the company is cautioning shareholders that it doesnât expect ads to drive revenues forward this year or next.
The company got a sizable boost from its password-sharing crackdown, but the momentum is fading. Advertising revenue is a key component of the streamerâs future growth.
Subscribers Slowing Down
Netflix added around 39 million subscribers over the past year, more than doubling this figure from the year before. However, the company predicted that subscriber growth in Q3 of this year will come in below last yearâs Q3 total.
These figures wonât be relevant for long â Netflix plans to stop reporting subscriber numbers in 2025, creating a challenge for investors trying to gauge growth.
If Netflix wants to keep its spot as the top streaming platform, it needs to ramp up advertising quickly.
Are you bullish or bearish on Netflix (NFLX) over the next 12 months? |
TOGETHER WITH STOCKEARNINGS.COM
15+ years of trading wisdom condensed into one powerful strategy. Learn to spot opportunities others miss during Q3 earnings.
Daily intel included: Morning briefing, Midday update, and Evening report. Claim your free Ultimate Strategy Guide To Trade Earnings Season now.
Limited time offer. Click here before this opportunity vanishes!
ON OUR RADAR
BI: Nick Gerli, CEO of real estate analytics firm Reventure, predicts a 20% housing price decline in the South due to waning demand and new supply.
Reuters: Treasury Secretary Janet Yellen will face questions from G20 finance leaders this week over US policy commitments after Bidenâs election withdrawal.
AP: The Environmental Protection Agency is awarding $4.3 billion in grants to fund projects in 30 states to reduce climate pollution.
Bloomberg: Sam Altmanâs OpenResearch completed the largest study on basic income, testing the impact of $1,000 monthly payments to participants.
Reuters: Cathie Woodâs ARK ETF has seen net outflows of more than $1.8 billion in the last six months.
What did you think of today's edition? |
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