Today is Friday, October 1, 2021.
Netflix Hits All-Time High With Video Game Acquisition
Shares of Netflix (Nasdaq: NFLX) popped 1.87% Thursday, reaching an all-time high of $610.27.
Background: This week, the tech and media giant announced that it acquired Night School, an independent video game developer. The acquisition signals that Netflix is going into the video game development industry, and investors love it.
The Good: Netflix is entering a new industry with lots of growth potential.
The Bad: Netflix still has to compete against all of the new streaming players, as well as video game developers. Plus, Night School is not a major video game developer.
Around the Market: Shares of most other video game stocks - including Activision Blizzard (Nasdaq: ATVI), Electronic Arts (Nasdaq EA), and Take Two Interactive (Nasdaq: TTWO) - were up on Thursday.
Final Thoughts: Netflix will likely address its video game plans when it reports earnings on October 19.
Notable Earnings Today: n/a.
Notable IPOs Today: First Watch Restaurant Group (Nasdaq: FWRG), TDCX Inc (NYSE: TDCX), Roivant Sciences Ltd. Common Shares, (Nasdaq: ROVI), Oxbridge Acquisition Corp. Class A Ordinary Shares (Nasdaq: OXAC), Exscientia Ltd (Nasdaq: EXAI), Healthcare Triangle, Inc. (Nasdaq: HTCI), Nutriband Inc. Warrant (Nasdaq: NTRBW).
Notable Equity Crowdfunding Campaigns Ending Today: n/a.
Notable Economic Events Today: Personal Spending (8:30 a.m. ET), ISM manufacturing index (10:00 a.m. ET).
Auto Giants Try EVs
Traditional automakers are dipping their toes into electric vehicles. Investors interested in EVs should take notice.
All In: General Motors (NYSE: GM) is rolling out electric vehicles and plans to stop selling fossil fuel cars by 2035. The stock is up 30% this year.
Not All In: The CEO of Toyota (NYSE: TM) recently made headlines when he came out against Japan going 100% EV due to potential job losses. The stock is up 16% this year.
Up-And-Coming: Ford (NYSE: F) is aiming to have the first deliveries for the F-150 Lightning electric trucks in the spring. Meanwhile, A 66% return this year on the stock price has investors wanting more.
Down: As a counter to the other traditional automakers, Nissan (OTCMKTS: NSANY) has seen its share price fall 4% this year. The company is focused on developing new EVs in the future.
Final Thoughts: Unlike EV startups, these auto giants have dividends and a longer track record.
Bed Bath & Beyond’s Surprising Earnings Miss
Shares of Bed Bath & Beyond (Nasdaq: BBBY) plummeted 22% Thursday after the retail company posted earnings results that were below expectations.
Numbers: The company’s quarterly revenue totaled $1.98 billion, slightly below the projection of $2.05 billion. But the real miss came with earnings per share, which was 4 cents, way below the projection of 52 cents.
Details: President and CEO Mark Tritton pinned the earnings miss on “unexpected, external disruptive forces.” In particular, he said the pandemic resulted in diminished store traffic, especially in Florida, Texas, and California. He also said there were supply chain challenges and lots of inflation.
Big Picture: It is possible that other large retailers have experienced the same difficulties, especially with inflation. We’ll see later in the quarter.
Half Glass Full: Bed Bath & Beyond has more than $1 billion in cash, so the company has the resources to overcome these challenges.
Final Thoughts: The upcoming holiday sales season will be a true test for Bed Bath & Beyond.
Trends to Watch
Generational Shift: New Gen Z ETF will focus on innovation, disruption and ethical values (Seeking Alpha)
It’s Back: McDonald's is bringing back the McRib — again (Yahoo! Finance)
State of Bitcoin: This map shows the best states for bitcoin mining (CNBC)
The Shift Has Hit The Fan: DeFi and DEX volumes soar amid China's crypto ban and ongoing US regulation (Cointelegraph)
San Francisco Treat: Cruise gets the green light to give driverless rides to passengers in San Francisco (The Verge)
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