It wasn’t all bad news – but investors don’t seem to care
It was an earnings week for the books as some of the biggest names in the market reported numbers – revealing some great performances while others fell short. And Netflix joined the mix, closing out the week with some surprising results.
The good? Netflix reported an impressive surge in subscribers – 10.1 million, to be exact. This marks the second quarter in a row that the company has hit the 10 million mark in terms of new subs. The company also beat expected revenue – raking in 6.15 billion versus the $6.08 that was expected.
But it wasn’t all good news…
The leading streaming company fell short, in a big way, when it came to analysts’ earnings per share expectations. For example, analysts predicted $1.81 earnings per share, but the company served up a disappointing $1.59. On top of this, Netflix is projecting just 2.5 million new subscribers for the September quarter, less than half of what many analysts expected.
And this confirmed the worst fear of many – that substantial Coronavirus-driven stream of new subscribers has officially reached its limit. And investors wasted no time after the news hit – sinking the stock nearly 8% on Friday.
Trading tip of the week…
Don’t get too wrapped up in the technical stuff
When it comes to trading, it’s easy to get wrapped up in the technical stuff. You know the things you spend all your time studying and trying to understand and end up even more confused than when you started?
I get it.
And I know in the live trading room many 1450 Club traders worry about the Greeks. I’m talking about Delta, Gamma, and Theta. You’ve probably seen those words floating around when you were exploring the market and looking into options.
But truthfully, when it comes to options trading – those things really don’t matter – especially when trading with me. Because I like to simplify trading – so, we block out all the noise and focus on what matters. Like what we’re willing to pay for the option and the target price we’re willing to sell it for. And regardless of whether you’re trading with me or not, I think you should simplify your trading too. Focus on your risk tolerance, the prices you’re willing to pay and sell at, and your profits.
By simplifying the process, you’ll be less likely to jump the gun on buying or selling an option, and in return, you’ll be protecting your bottom dollar.
The earnings report that has caught my eye:
It’s another week of earnings reports.
And I know you don’t have time to be sifting through all the numbers and news.
So, here’s the one I’ll be focusing on, and I think you should too:
Intel Corporation (INTC).
Crowned the world’s largest chipmaker, this stock has been consistently beating earnings estimates and is positioned to do it again on July 23.
And when looking at the last two reports, INTC has beat expectations by nearly 17.93% – a pleasant surprise for investors. That’s why I’ll keep a close eye on this stock’s earnings report, and I’ll be sure to keep you updated.
Wow, What a Week…
First, a mobile voice and multimedia company hit both of its profit targets in under 24 hours, bringing us the opportunity for some seriously fast returns…
Then, the following day, a vehicle manufacturer hit a profit target of its own, setting us up for a shot at another quick win.
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