Netflix, solar stocks, Electronic Arts: Trending stocks
Netflix (NFLX) shares close Tuesday in the red after the streamer announced its President of Advertising Jeremi Gorman is being replaced by studio executive Amy Reinhard, according to The Information.
Solar stocks, such as Sunrun (RUN), Sunnova (NOVA), and SunPower (SPWR), close the day in the green as France is planning to boost solar power capacity, and California regulators delay a decision to cut rooftop solar panel installation incentives.
Electronic Arts (EA) shares end the day higher as the stock was upgraded to "Buy" from "Neutral" by Bank of America analysts.
Yahoo Finance's Julie Hyman and Josh Lipton take a look at some of the trending stocks of the day. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Video Transcript
JULIE HYMAN: Well, in terms of stocks that we are watching on the day, a new report from the information, laying out how Netflix's advertising push may be proving tougher than the streaming giant expected-- shares of the company down by 3%. And they are trending on the Yahoo Finance platform.
Now, the information, which covers the tech industry, reporting here that there are some personnel changes at Netflix, that the Ad Sales Chief Jeremi Gorman is being replaced with Amy Reinhart, which is-- who is a-- Netflix Executive. That's been there for a while.
Josh, there's been sort of waves here up and down of the expectations that people had for Netflix's ad-supported offering. But it felt like the latest wave was pretty positive.
JOSH LIPTON: Yeah, interesting that other-- I mean, folks reminding me actually that we've had some shuffles in that C-suite. [? You know, ?] last week, we named new executives take on the roles of Chief Product Officer, Chief Technology Officer. So there's been some movement there. Stock may not be, you know, doing a whole lot today. You can actually see us down more than 3%. But it's been a nice performer this year.
JULIE HYMAN: Yeah, it has in part on that optimism over this ad offering and what kind of revenue. They were incremental revenue [? they ?] were going to get from that. So it's interesting here to have this what-- purports to be this sort of behind the scenes reporting from the information, that maybe things there are not quite as solid as analysts had anticipated. But, as you say, it's still up 62% over the past year.
JOSH LIPTON: Not a bad [? note. ?]
JULIE HYMAN: Not at all.
JOSH LIPTON: Shares of solar companies rising in Today's Trade. France-- announcing plans to boost solar power capacity in the country. And, meanwhile, California regulators delay a decision to cut incentives for rooftop solar panels installations for apartments, schools, and farms.
And you can see these moves here, Julie. Look at SunPower, First Solar, Sunrun, SolarEdge-- huge moves in the space.
JULIE HYMAN: Yeah, huge moves, and it's a space that has been beat up recently or, at the very least, has been volatile recently. SolarEdge-- in particular, was catching my attention because it was one of the worst performers in the S&P 500 yesterday. It is domiciled in Israel.
JOSH LIPTON: Interesting, yeah.
JULIE HYMAN: So it was swept up as well in the wave of stocks yesterday that were falling that had associations in that country as war breaks out there. But many of those stocks-- I've been watching others the likes of Mobileye, Fiverr. Many of the Israel-- Israeli-based stocks have been coming back today, likewise, many of these solar stocks coming back today.
That California decision is just delayed until early November, that might cut incentives for solar panels and solar installations in various areas. But, nonetheless, it's-- the delay is enough to create some relief there in that group.
JOSH LIPTON: All right, one to watch.
JULIE HYMAN: Yes. And also, we're watching another one here. EA-- Electronic Arts, Bank of America upgrading that stock to buy from neutral. And the firm seeing the risk balance of EA's rebrand of its FIFA franchise-- now appearing attractive. Are you-- are you a gaming guy? Do you get--
JOSH LIPTON: You know, I'm-- I'm not a gaming guy. I'm not anti-gaming. Some of my best friends are gamers. But it's never-- it's never found me. Interesting about this, too-- I remember we talked to Michael Pachter of Wedbush recently.
JULIE HYMAN: Yes.
JOSH LIPTON: And we were saying, with the Microsoft-- Microsoft Activision deal in the news so much, we did ask him, do you think like Electronic Arts or Take-Two could be next? And he said, with all the regulatory challenges, and headaches, and drama-- no chance.
JULIE HYMAN: Interesting.
JOSH LIPTON: Not on the target-- he doesn't think so.
JULIE HYMAN: Well, I guess the folks over at Bank of America think so. They think that guidance will, quote, "dispel investor skepticism over the sports franchises ability to grow next year." So it looks like investors today, at least, are buying that thesis and buying the stock, which is up by nearly 3%.
JOSH LIPTON: Electronic Arts has a new friend in Bank of America. Nice to see.
