Pre-market stocks: even Netflix worried about coronavirus

0
143


The latest: the company said Tuesday after the US markets closed that it had added an impressive 16 million subscribers between January and March, as the coronavirus pandemic made people squat and get worked up on thematic series like “Tiger King” and reality shows like “Love is blind,” reports my CNN colleague Frank Pallotta.

Netflix now has 183 million subscribers worldwide and plans to add another 7.5 million in the second quarter. Its first quarter profit more than doubled compared to the same period in 2019.

This performance helps explain why the company’s title gained 34% this year while the S&P 500 lost more than 15%. Its actions were maintained in the trade before marketing.

But Netflix is ​​still worried about the future. “In our history of more than 20 years, we have never seen a more uncertain or troubling future,” the company said in a letter to shareholders.

New series to come: Netflix content general manager Ted Sarandos has assured analysts that the company will not run out of content in the short term due to production stoppages.

“We are really working very far from the industry because we launch our shows all episodes at once,” he said, noting that Netflix’s 2020 film and series series “is widely shot and in post-production ”.

However, 2021 could be more difficult. The company also expects that the growth in subscribers and visitor numbers will decrease once the blockages are completed and people can resume a more regular daily routine.

Home orders also help Netflix competitors. Disney +, Disney’s new streaming service, crossed 50 million subscribers earlier this month. And HBO Max, the CNN parent AT&T streaming service, will launch on May 27.

“I was so impressed with the execution of Disney +,” Netflix CEO Reed Hastings said on Tuesday. “My hat is closed to them. “

As strong: Break ((BREAK) stocks rose almost 20% in pre-market trade after the company said on Tuesday that the coronavirus epidemic has increased use.

The collapse in oil prices is globalizing

Oil prices continued their epic collapse on Wednesday as Brent crude futures, the main benchmark for global contracts, plunged 17% to their lowest level since 1999.

World oil prices hit 21-year low, but equity markets edged up

Remember: the collapse follows a historic rout on Monday when US oil for May delivery was traded at negative prices as the combination of demand evaporating due to the pandemic, oversupply and a critical shortage of storage has seen traders effectively pay people to get American crude out of their hands. .

US oil futures for June also remained depressed Wednesday, falling 0.8% to $ 11.47 a barrel for the last time.

Investors are concerned about the lack of oil hubs to store barrels that nobody wants because the coronavirus pandemic is causing demand for crude to subside. JPMorgan strategists predict that as refineries slow processing, storage in central Cushing, Oklahoma and on the west coast will fill by May 22.

Look at this space: With a wave of bankruptcies and layoffs on the horizon, US President Donald Trump tweeted Tuesday that his administration was developing a plan to bail out the oil and gas sector.

OPEC Pager: Several OPEC + members discussed the price crash during a conference call Tuesday, although key members, including Saudi Arabia and Russia, did not participate, Reuters said. .

How serious is the airline crisis? Choose Delta Air Lines

Delta Air Lines is the first airline to release its first quarter results Wednesday morning in what promises to be a miserable quarter for carriers.

Low expectations: analysts polled by FactSet predict operating losses of at least $ 2 billion for US airlines between January and March, reports CNN Business colleague Chris Isidore. It would be the first industry-wide quarterly loss in eight years.

Before the coronavirus struck and air traffic plunged, the industry had experienced the greatest break-even period in its history.

Mergers and a strong economy have spurred travel, producing packaged planes and solid profits. None of the big four airlines that control 80% of the US market – American, Delta, United and Southwest – have reported a single quarter loss in more than five years.

This is the week when everything changes.

next

Delta Airlines ((DAL), Ericsson ((ERIC), Kimberly-Clark ((KMB), AT&T ((T) and Biogen ((BIIB) report its results before the US markets open. Alcoa ((AA) and CSX ((CSX) follow after closing.

Also today: US government data on crude oil stocks arrive at 10:30 a.m.ET.

Coming tomorrow: How many Americans filed their first week of unemployment benefits last week? Economists polled by Reuters expect 4.15 million additional initial claims.

LEAVE A REPLY

Please enter your comment!
Please enter your name here