Oh No, Netflix!

Tale of the Tape

Good evening, everyone. We hope y’all had a terrific Tuesday!! 

The market of stocks struggled— maybe traders got too high to buy?? 😉 🚬

Every major index closed lower. The small-caps tumbled 2% on their worst day so far this month. 

The sectors were split. Utilities lept 1.3% while real estate rallied 1.11% and closed at a new all-time high. Hip-hip hooray!! 🥳 Energy stumbled 2.65% and financials flopped 1.87%.

Crypto crept along. Bitcoin bopped between 57,000 and 53,400 while Ethereum snapped back, surging 7%. Doge is down ~30% on the day and trades below yesterday’s low. How low will it go..? Nobody knows. 🐶

IBM gapped up and gained 3.8% following last night’s earnings. The stock settled at its highest price since February 26, 2020.

$FUTU fell 23% after the company’s stock offering. Read the release here

Netflix dropped earnings after the close and the stock tumbled more than 10% after hours. 🌌 See the round-up below.

Here are the closing prints: 

S&P 5004,134-0.68%
Russell 20002,188-1.96%
Dow Jones33,821-0.75%

Earnings Round-Up

Oh no… Netflix. The streaming service reported earnings after the close. 📺 The company beat analysts’ expectations, but missed new subscription expectations. 

Here are the numbers

EPS: $3.75 vs $2.75 est
Revenue: $7.16B, +24% YoY

Netflix addressed its less-than-ideal subscription numbers: 

We believe paid membership growth slowed due to the big Covid-19 pull forward in 2020 and a lighter content slate in the first half of this year, due to Covid-19 production delays.

You win some, you lose some. 🤷 The stock dropped double-digits after hours and trades just above $500. Here’s the daily chart: 

Stock Charts 🕯

The market of stocks struggled to turn around on Tuesday. Let’s look at some daily charts to see where the dust settled. 🔍 

The Russell 2000 was the worst major index. The Russell 2000 ETF $IWM tumbled 2.05% and closed at its lowest price since March 29.

The Nasdaq Composite Index is down 2% from Friday’s final print. Last week, the index tried to take out all-time highs, and failed. Does it need a ‘third time’s a charm?’ Or was that a double-top…? 

Utilities may have led the sectors, but real estate rallied to a new all-time high. $XLRE ripped 1.11% and finished just above its pre-COVID close. 👀 Here’s the wild weekly chart:

Traders puff, puff, pass’d on pot stocks today. On 4.20, too— how disappointing. 😔 $MJ rolled over 4.5%. 

Facebook was the only FAANG member to close higher today. After Netflix’s dusty earnings report, will $FB fall below $300? 

Drama, Drama, Drama

The Kansas City Southern (KCS) transportation company disclosed an unsolicited proposal today from Canadian National Railway today… to buy $KCS for $30B. 💰

Drama, drama, drama. Last month, KCS already agreed to a merger with Canadian Pacfic for $25B. CN outbid CP by almost 20%, though.

A partnership between Kansas City Southern and Canadian railways would create the first-ever rail network connecting Mexico, the US, and Canada. So this deal is kind of a big deal

KCS released a statement today claiming “[KCS] will evaluate CN’s proposal in accordance with the terms of KCS’ merger agreement with CP, and will respond in due course.” 

Money talks— C.R.E.A.M.

An Apple-solutely Great Event

Today Apple held its ‘Spring Loaded’ event, and let’s just say— the new technology is very a-peel-ing. 🍎

Here’s a quick overview of some new products:

Pretty in purple: Apple unveiled a new version of its iPhone 12 in a “stunning new purple.” While it has the same feature set as all the other colors, we’re certainly not complaining—just look at that color! 😍

Back to the basics: Did you ever own an iMac G3 with the colored backs? Do you crave that nostalgia??If so, we have some good news! 

Today Apple released an updated line of its iMac computers, and they’re thin. 11.5mm thin, to be exact. The computers also feature a 24-inch 4.5k Retina display, a 1080p FaceTime HD Camera (great for Zoom calls!), studio-quality mics, keyboard Touch ID, and Apple’s M1 chip for blazing-fast speeds. The iMacs start at $1299.

Never lose anything again: Meet AirTag. It’s a small disk that attaches to objects like your backpack, keys, or wallet. If you lose something with an AirTag, you can track it down with Apple’s global “Find My” network. You can purchase 1 for $29, or 4 for $99.

SpaceX x NASA

SpaceX officially won a contract from NASA permitting Elon’s company to develop the first-ever commercial human lander for NASA’s Artemis missions. 💪

Musk’s space company will produce the ‘Starship’ human landing system. This new rocket will carry its crew, supplies, and equipment for a first mission planned in 2024.

The 2024 mission will bring astronauts to space with NASA’s ‘Space Launch System’ on the Orion spacecraft, they’ll transfer to ‘Starship,’ and then safely land on the moon. 🌙 🚀

NASA associate Kathy Lueders commented on SpaceX’s contract:

With this award, NASA and our partners will complete the first crewed demonstration mission to the surface of the Moon in the 21st century as the agency takes a step forward for women’s equality and long-term deep space exploration. This critical step puts humanity on a path to sustainable lunar exploration and keeps our eyes on missions farther into the solar system, including Mars.

We can’t wait for 2024. 😊

Earnings This Week

Be sure to know when your stocks report earnings. Here’s the earnings calendar

Links That Don’t Suck

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🛫 Frodo Alvarez Takes Five Drones to The Sky to Depict a Massive Sports Titan

🔋 Globally, Renewables Are Growing – But So Is Demand For Coal

🇫🇮 What Makes a Happy Country?

🙅‍♂️ Chat App Discord Ends Takeover Talks With Microsoft

🤖 The (Robot) Pizza Guy Is Here