قالب وردپرس درنا توس
Home / Business / Stock market summary: Netflix stock price rose; Apple’s earnings report fell back

Stock market summary: Netflix stock price rose; Apple’s earnings report fell back



After a dismal three-day opening on Thursday, the major market benchmarks finally rose, and investors in the stock market on Thursday were somewhat relieved. Investors’ attention to major issues such as the presidential election or the COVID-19 pandemic remained undiminished, but they received a series of positive earnings data on Thursday morning. To the end, Dow Jones Industrial Average (DJ Index: ^ DJI), S&P 500 (SNPINDEX: ^GSPC)with Nasdaq Composite Index (Nasdaq Index: ^ IXIC) Driven by Nasdaq, all stocks moved higher.

Today̵
7;s stock market

index

Percentage change

Point change

Dow

+ 0.52%

+139

S&P 500

+ 1.19%

+39

Nasdaq Composite Index

+ 1.64%

+181

Data source: Yahoo! Finance.

Among the top stocks rising in regular trading hours on Thursday, the tech giants, Netflix (Nasdaq stock code: NFLX) with apple (Nasdaq stock code: AAPL). Netflix’s move was announced after an announcement that many investors had been expecting it for a long time. However, unfortunately for Apple, the increase in its stock price fell after regular trading ended, because the iPhone maker’s reported quarterly financial results did not meet investor expectations.

Netflix finally raised subscription prices

Netflix’s stock price rose nearly 4%. This makes the stock far below its historical high, but compared with last week’s correction, it has rebounded significantly.

Netflix increased the price of video streaming subscriptions for American customers. Users who use the standard subscription plan will increase their bill by $1 per month and now pay $14 per month. At the same time, the price of the premium package has been raised by $2, bringing the total price of four simultaneous videos to $18 per month.

It has been nearly two years since Netflix last raised prices in the United States in January 2019. This move occurred because the company’s subscribers surged, but it also put more effort into producing its own content and obtaining high-quality programming from third-party providers. In addition, competition from Apple and other streaming video services puts Netflix in a position where it needs to take full advantage of its leadership in the industry.

It will be interesting to see how much pricing power Netflix has after raising prices. If this action provokes a massive outflow of subscribers, investors will know that the video streaming giant’s calculations are wrong.

An apple a day

Elsewhere, Apple’s stock rose nearly 4% during regular trading hours, but the stock gave up all these gains and even fell nearly 5% after the 5:15 pm Eastern time. Apple’s fourth-quarter financial report has some highs, but shareholders seem to want more.

Four phones in different colors.

Image source: Apple.

Apple’s revenue rose slightly by 1% to $64.7 billion, the highest revenue in the fourth quarter in the company’s history. However, the increase in operating expenses, especially in research and development, caused net income to drop by more than 7% year-on-year. Even the sharp drop in outstanding shares due to stock buybacks is not enough to prevent the tech giant’s earnings per share from falling slightly from the same period last year.

One problem is that Apple introduced the new iPhone 12, so in the quarter before the release of that version, sales of its older iPhone models were poor. iPhone revenue fell by more than 20% year-on-year. The growth in service sector and Mac sales revenue offset Apple’s overall revenue growth.

Now people are turning their attention to the resort area. If the iPhone 12 can exceed expectations, then everything should be forgiven. However, if problems plague the release, then the drop after get off work may be just the beginning of a long-term decline for iPhone manufacturers.




Source link