What to watch in Netflix earnings
Netflix (NFLX) is scheduled to report third-quarter earnings after the bell this afternoon. Investors are expecting earnings per share of 32 cents on revenue of $2.97 billion. The big thing to watch will be subscriber growth. According to Bloomberg, analysts are expecting Netflix to add 774,000 domestic subscribers in the third quarter and 3.72 million international users. On Friday, Netflix got a pair of bullish calls from JPMorgan and Goldman Sachs. JPMorgan said it expects shares to climb to $225 a share while Goldman upped its price target to $235, a new Street high. Netflix’s stock is up 23.6% over the past three months.
Apple shares climb on upgrade
KeyBanc raised its rating on Apple (AAPL) to overweight from sector weight. Analyst Andy Hargreaves issued a price target of $187 a share, which is 19% above Friday’s closing price. In a note to clients, Hargreaves wrote, “The potential for Apple to exercise greater pricing power, along with further App Store growth, supports the view of the company as a franchise with subscription-like qualities rather than a regular hardware business.” Apple was last trading up 1.4% to $159.22 a share.
Adobe gets hit with a downgrade
Deutsche Bank cut its rating on Adobe (ADBE) to hold from buy while maintaining a $160 price target. Analyst Nandan Amladi warned the stock’s current valuation is ‘relatively full.’ Adobe shares have jumped nearly 46% so far this year.
Nordstrom abandons plans to go private
The Nordstrom (JWN) family has suspended its efforts to take the department store chain private for the remainder of the year after struggling to secure enough financing for a buyout. The group did, however, informed the Special Committee of the Board of Directors of Nordstrom that it intends to resume exploring the possibility of a go-private proposal after the holiday season. Nordstrom was last trading down 5.9% to $40.12 a share.
Blackberry ditches the Nasdaq for the NYSE
Blackberry (BB) began trading on the New York Stock Exchange under its new ticker symbol “BB.” The company’s stock is under pressure today following news that Blackberry’s licensing director, Victor Schubert, has left. Schubert is the second senior executive from its licensing unit to leave Blackberry over the last several weeks. Watch Yahoo Finance’s full interview with Blackberry CEO John Chen here.