Tag Archives: etf

Microsoft Corporation Sues Uncle Sam Over Unconstitutional Data Searches

Microsoft just sued the U.S. Department of Justice, claiming that it was “unconstitutional” to force it to remain silent about government sponsored cloud data searches. In the complaint filed in a Washington District Court, the

Netflix Stock Dives On Weak Subscriber Guidance For Q2

Netflix ( NFLX ) late Monday beat forecasts for first-quarter earnings and subscriber growth, but disappointed with weak subscriber guidance for the current quarter. Netflix stock fell 10% in after-hours trading following the earnings news release. During the regular session Monday, Netflix fell 2.8% to 108.40. The Internet TV service gained 6.74 million total streaming subscribers worldwide in Q1, including 2.23 million in the U.S. and 4.51 million in international markets. In January, Netflix said it expected to add 1.75 million U.S. streaming subscribers and 4.35 million international subscribers for a total of 6.1 million additional subscribers in the first quarter. It expected to end Q1 with 80.86 million total streaming subscribers, but its actual total was 81.5 million. For the current quarter, Netflix said it expects to add just 500,000 U.S. subscribers and 2 million international subscribers. That would be the smallest customer growth in two years. The Los Gatos, Calif.-based company faces subscriber churn in the U.S. as a result of longtime customers seeing a $2 increase to their monthly fee to $9.99 a month. In the first quarter, Netflix earned 6 cents a share on sales of $1.958 billion. Analysts polled by Thomson Reuters expected Netflix to earn 3 cents a share on sales of $1.965 billion in the first quarter. For the second quarter, Netflix is targeting earnings per share of 2 cents. It did not give a revenue estimate. Wall Street had been modeling for Netflix to earn 5 cents a share, down 17% year over year, on sales of $2.117 billion, up 29%, in Q2. In the Internet TV sector, Netflix competes with Amazon.com ( AMZN ), Hulu, Time Warner ‘s ( TWX ) HBO and others. On Sunday, Amazon ramped up the competition with Netflix by announcing a stand-alone subscription video service at a lower price. Amazon is now offering its Amazon Prime Video for $8.99 a month, a dollar less than Netflix’s standard streaming plan. Amazon Prime Video was previously available only as part of the online retailer’s $99-a-year Prime service, which offers free two-day shipping on millions of items. Amazon stock closed up 1.5%.

Netflix, Delta Air Follow Apple In Undercutting This Key Support Area

Netflix ( NFLX ) and Delta Air Lines ( DAL ) are among the big-name companies that undercut their 200-day moving averages Monday, following on the heels of Apple ( AAPL ). Los Gatos, Calif.-based Netflix fell 2.8% to 108.40 on the stock market today , closing above its 200-day line after falling as low as 106.02 intraday. Netflix moved above the support/resistance level last week. But shares crashed late Monday after Netflix beat Q1 earnings estimates but gave weak Q2 subscriber growth targets. The streaming video giant faces stepped-up competition with Amazon.com ( AMZN ), which is now offering its Amazon Prime Video as a stand-alone service for $8.99 per month, $1 cheaper than Netflix’s standard streaming plan. Amazon, which reports Q1 results on April 28, broke out of a cup-with-handle formation last week, rising more than 6% in the process. Amazon rose 1.5% Monday. Delta Air Lines fell below its 50- and 200-day moving lines Monday, losing 2%, while most other carriers’ stocks were little changed. The Atlanta-based airline last week reported strong Q1 earnings, boosted by cheaper jet fuel, but revenue slipped 1% as passengers paid slightly less for each mile they flew. Meanwhile, Apple stock fell 2.2%, falling further below its 200-day line after falling below that area on Friday. A research note from Pacific Crest Securities found that consumers prefer data-collecting gadgets such as Fitbit ( FIT ) opposed to more complex wearables such as the Apple Watch. Fitbit sold 21 million units last year compared to the 10 million Apple Watches sold, Pacific Crest Securities said. IBD’s Take: How does Apple stock rate? Objective analysis at IBD Stock Checkup Finally, keep an eye on social networking giant Facebook ( FB ). Facebook stock rose fractionally Monday as continues to find support at its 50-day moving average. Facebook is well above its 200-day line but has lost sight of a buy point at 117.09.