Netflix (NFLX) is down in early trading. Yesterday was in fact a wild ride for shareholders with the stock up double-digits in the premarket, but dropping 9% by day's end. The move came after the CEO warned Monday that the stock's move higher seemed like euphoria. There was also the news that Carl Icahn sold half of his shares in Netflix. Check out this tweet: Sold block of Netflix today. Wish to thank Reed Hastings, Ted Sarandos, Netflix team, and last but not least Kevin Spacey. Netflix shares are up 250% year-to-date, which is why Icahn said he thought now was a wise time to exit.
Dow component AT&T (T) reports earnings after the bell. Here's a stock which has really underperformed the market this year, up less than a-percent. This is despite the fact that it's paying what amounts to a 5% dividend. AT&T is expected to post earning of 65-cents a share, up 2-cents form a year ago on revenue that's risen above $32-billion dollars. Earlier this week the company announced it was selling and leasing nearly 10,000 of its cell towers. Look for talk today about possible acquisitions here or overseas.
Three tech stocks are tumbling sharply on their earnings: Cree (CREE), Broadcom (BRCM) and Unisys (UIS). Looking at what's driving these companies lower, Cree which makes LED lights actually matched estimates of 39-cents a share. It was also very close on revenues but issued a weak outlook. Turning to Broadcom, it had a solid beat earning 76-cents a share when expectations were for 69-cents. But here as well the forecast was gloomy. In fact Broadcom is planning job cuts. As for Unisys, it surprised with a swing to a loss of 26-cents a share. The consensus had been for profits of 40-cents a share. Revenue was also well below estimates. Unisys stock had been on a tear until now, up 45% year-to-date.
Panera (PNRA) has been down as much as 6% in the premarket. Panera actually beat estimates for the quarter making $1.48 a share versus a consensus of $1.35. Revenue however was below expectations. Panera says sales overall rose for the quarter, but that's because the company increased menu prices. Traffic was down. Panera stock has essentially been unchanged year-to-date, but this morning’s losses put it in the red.
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- Carl Icahn