Stocks were mostly lower on Friday afternoon as big tech stocks continued to fall and the S&P 500 index fell below the 5,000 mark.
The S&P 500 Index (^GSPC) fell about 0.8%, and the tech-heavy Nasdaq Composite Index (^IXIC) fell 1.8%. The Dow Jones Industrial Average (^DJI) rose about 0.2%.
The S&P 500 fell for the fifth day in a row on Thursday as investors absorbed disappointing returns from Netflix (NFLX). This weighed on hopes that quarterly profits would meet high expectations leading to a rebound in stock price gains. Shares of the streaming giant, the first among big-cap tech companies to report, fell 9% in afternoon trading.
Other tech stocks followed suit. Market favorite Nvidia (NVDA) fell more than 4%, and Amazon (AMZN) fell more than 2%. Apple (AAPL) fell 1%.
Markets recovered from a deeper slide after Israel’s retaliatory attacks on Iran spooked traders overnight, prompting a rush to safe-haven assets such as gold. However, although Iran acknowledged the drone attack and called it a failure, investors remain on high alert.
Stocks were already under pressure before the shock due to persistent uncertainty over whether the U.S. Federal Reserve would cut interest rates.
On Friday, Procter & Gamble (PG) released its financial results, raising its full-year profit forecast despite missing quarterly sales forecasts. Additionally, American Express (AXP) reportedly beat profits as its wealthy customers continued to spend.
Meanwhile, U.S. Treasuries have rebounded almost entirely from their biggest rally this year. The yield on the 10-year US Treasury note (^TNX), which is considered a safe haven, fell to about 4.6%.
In the commodity market, Brent crude oil futures (BZ=F), the world oil benchmark, traded around $87 per barrel, up about 0.4%. West Texas Intermediate crude oil futures (CL=F) rose 0.3% to about $83 a barrel. Gold (GC=F) rose 0.3%, but growth slowed slightly after its early gains.
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Here are the most important points about Netflix
Netflix (NFLX) stock is taking a hit pre-market after a big quarter on just about everything.
It makes sense; the stock was perfectly priced prior to the report.
But above all the noise, this point made by Pivotal Research’s Jeff Wlodarczak is the most important thing to bring up on Netflix right now.
“Netflix delivered first-quarter subscriber growth across the board driven by core markets in the US and EUR, with better-than-expected average revenue per user (successful fourth-quarter price increases in US/UK/France) Once again, we reported high-quality results.” This means a powerful combo of significantly increasing subscribers, capturing prices and expanding margins.. ”
There’s nothing in the report to suggest that Netflix’s fundamentals are struggling, and one has to wonder if today’s drop in the stock price will buy it. Some would argue that the stock isn’t that expensive compared to its historical trading levels.
Check out Netflix’s current valuation compared to what we saw from 2016 to 2021, when the company wasn’t fundamentally as strong as it is today. Of course, all data is provided by the Yahoo Finance platform.
You can further analyze this data on Netflix by going to the statistics section of the Netflix ticker page.
Netflix stock may not be that expensive on the surface. (Yahoo Finance)
