Good Evening. U.S. equities surged in a turnaround rally on Tuesday, helping to push all three major indexes above their June lows by more than 5%.
The Dow Jones increased by 2.43%, while the benchmark S&P 500 increased by 2.76%. The heavily tech-focused Nasdaq Composite rose 3.11%.
AFTER HOURS SURGE
After the market closed on Tuesday, Netflix (NFLX) released its fiscal second-quarter earnings, as the firm struggles with persistent inflationary pressures, more competition, and a rise in subscriber turnover.
Following-hours trading on the streaming giant’s shares increased by more than 8% as a result of the Q2 subscriber data showing a lesser drop than anticipated. In light of the general slowdown in subscriber growth, increased pressure from foreign exchange, and the dollar’s continued strength in relation to other currencies, revenue and adjusted earnings per share were mixed.
Revenue: $7.97 billion vs $8.05 billion expected
Earnings per share: $3.20 vs $2.98 expected
Subscribers: Loss of 970,000 vs a loss of 2 million users expected
After the streamer lost 200,000 customers in April, the predicted loss of 2 million paying users for the second quarter would have been the greatest quarterly fall in the company’s history. Although analysts have acknowledged that the second half of the year may provide significant downside risks due to macroeconomic worries, Netflix’s Q3 subscription guidance of 1 million subscribers fell short of Wall Street’s average estimate of 1.9 million.
THE REVAMP WE ALL BEEN WITING FOR!
Speaking of Streaming Services… Amazon revamped its streaming service after nine years of witnessing people abandon it and migrate to Hulu. Although the platform’s new design isn’t very innovative, it may achieve Amazon’s goal of emphasizing some of Prime Video’s most crucial features.
In 2006, Amazon debuted its video platform. It entered the competition for original material in 2012, and Transparent brought it its first Primetime Emmy in 2015. However, Prime Video’s clumsy interface was mercilessly criticized and seemed to have been added as an afterthought.
But everything is about to change. A navigation sidebar, a top 10 list, a more streamlined arrangement of Amazon original content, the option to sort material by category, and a focus on live TV—particularly sports programming—are among the new features.
The Important feature is the last one: Along with other streaming goliaths, Amazon has started to make significant investments in attracting live sports following. The business last year won exclusive rights to broadcast NFL Thursday Night Football games, and it is also negotiating a deal to broadcast the UEFA Champions League.