Stocks Continue to Reach New-Highs Before Earnings: NFLX, MSFT, META, ON, MA
As the broader market continues to move higher, some stocks are also reaching new highs before their earnings.
1. $Netflix(NFLX)$ rose to $478.15 on 18th July.
Netflix's decision to start monetizing password-sharing users, a practice that was previously tolerated, is expected to have a positive impact on the company's Q2 2023 earnings. The move is seen as a strategic step to increase revenue and attract more subscribers.
In response to the crackdown on password-sharing, more than 3.5 million new sign-ups were recorded in the U.S. alone in June 2023, making it the largest single month of subscriber acquisition ever measured for the service.
Wall Street analysts anticipate Netflix's revenue for Q2 to be around $8.29 billion, representing a 4% year-over-year increase, while earnings per share are projected to be $2.85, slightly down from Q2 2022.
2. $Microsoft(MSFT)$ rose to $366.78 on 18th July.
Microsoft revealed at the global partner conference held yesterday that Microsoft 365 Copilot will be priced at $30 per user per month for subscriptions targeting Office 365 E3, E5, Business Standard, and Business Premium users.
Based on the official pricing, these subscription services for enterprise users are currently charged between $12.5 to $38 per user per month. This means that by offering the Office AI assistant tool, Microsoft has increased the "actual pricing" of its Office services for business users by 1 to 3 times!
As a result of this announcement, Microsoft's stock price rose by 3.98% on Tuesday, reaching a new all-time high! The previous record was set in June at $348.10. The positive news from Microsoft also had a positive impact on the overall market and tech stocks.
3. $Meta Platforms, Inc.(META)$ rose to $316.24 on 13th July
Meta Platforms is set to report its second-quarter earnings after the closing of the US markets on 27th July. The company's shares have been among the top performers on Wall Street this year, experiencing an impressive year-to-date increase of approximately 160%.
In efforts to enhance efficiency and reduce costs, Meta decided to cancel some of its data center construction projects. Instead, the company plans to invest in a new, more cost-effective and faster design. Additionally, there was a 25% staff layoff, which may indicate a focus on higher revenue growth, aligning with CEO Mark Zuckerberg's commitment to a "year of efficiency" in 2023.
Meta recently launched a Twitter-like app called Threads, which has gained significant traction, amassing 100 million users within its first week of release. The future will reveal whether Meta can retain these users as it continues to evolve and develop Threads in the upcoming months.
Earnings per share: $2.915, + 18.5% annually
Revenue: 31.054 billion, + 7.7% annually
4. $ON Semiconductor(ON)$ rose to $105.35 on 18th July.
ON Semiconductor Corporation provides intelligent sensing and power solutions in the United States and internationally.
The company is expected to release the earnings on 31th July.
5. $MasterCard(MA)$ rose to $404 on 17th July.
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services.
The company is expected to release the earnings on 27th July.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Still wary of $NFLX$ [Thinking]
However thinking $ON$ might dock nicely into my port. [serious] [Thinking]