(KRON) – Winner: Mixed Markets as Rates Slip
The Dow Jones Industrial Average rose as traders poured through the latest quarterly reports and weighed recent moves in interest rates.
Netflix fell more than 35% after losing subscribers, and that news led shares of streaming companies Disney, Roku, Warner Bros. Discovery and Paramount to fall.
Tesla and United Airlines are slated to report after the bell.
The price of a home sold in March was up 15% as inventory dwindled to 950,00 homes for sale, a decrease of 9.5% year over year. At the current sales pace that represents a two-month supply.
Loser: Netflix is bleeding subscribers
“All good growth stories eventually come to an end.”
A lot of the people who signed up for Netflix during the COVID-19 pandemic lockdown are now cancelling.
The streaming giant posted a net loss of 200,000 subscribers for the first time in over a decade — and it expects to lose two million more this spring.
Netflix cited password sharing and growing streaming competition as major headwinds to its revenue growth.
Russia’s invasion of Ukraine pushed Netflix to remove its service to Russia, which cost it 700,000 subscribers.
Netflix will explore an ad-supported tier “over the next year or two.”
Netflix plans to better monetize the estimated 100 million households that are sharing passwords to use the service.
But those two potential growth levers are likely one to two years away
Loser: Tesla’s Earnings Are Today
Tesla reports earnings later today.
This earnings print sets up to be more interesting than usual for the electric-vehicle leader.
Inflation, war and disease have roiled the entire auto sector.
The average price for a basket of metals that go into EV batteries rose 74% in the first quarter from the fourth.
The Russian invasion of Ukraine created more parts supply shortages, frustrating purchasing managers.
And new COVID-19 lockdown policies in China shut Tesla’s Shanghai plant at the end of the quarter.
Total operating profit is projected to be $2.6 billion.
Tesla shares have fallen about 3% year to date.