Netflix weak despite strong subscriber numbers
Netflix (NFLX) shares are cooling off after surging to all-time highs. The video streaming service posted a big beat on third-quarter results, reporting earnings per share of 37 cents on revenue of $2.98 billion. Subscriber growth also surprised to the upside, with 850,000 domestic subscribers (774,000 expected) and 4.45 million international users (3.72 million expected).
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% over the past three months.
Morgan Stanley beats on earnings, revenue
Morgan Stanley (MS) handily beat on earnings, posting EPS $0.12 above estimates, at $0.93. Revenue also topped forecasts, climbing 3% year over year to $9.197 billion. Gains in wealth management and investment banking boosted results.
Like the other major banks, Morgan Stanley reported that fixed-income trading revenues fell 21% over the quarter due to “subdued activity.”
Shares of the investment bank are up nearly 20% over the past 6 months.
Goldman Sachs beats on earnings, revenue
Goldman Sachs (GS) also posted a surprise beat on earnings, despite revealing a 26% drop in fixed-income trading revenue. The investment bank reported EPS of $5.02, above the expected $4.17, on revenue of $8.33 billion.
Goldman’s asset-management business reported a 3% gain in revenue. Meanwhile its investment banking business, which organizes deals and helps companies raise money, reported a 17% revenue surge from a year ago.
Boeing accuses Airbus of ‘questionable deal’
Boeing (BA), the world’s largest aerospace company, is taking aim at Airbus’s purchase of a majority stake in Bombardier’s CSeries jet program, accusing the companies of attempting to dodge import duties
“This looks like a questionable deal between two heavily state-subsidized competitors to skirt the recent findings of the U.S. government,” a Boeing spokesman said.
Airbus and Bombardier announced plans on Monday to make its C-Series jets in Alabama.
While Boeing stock is off about 0.5%, shares are trading only a few dollars away from their all-time high.