“While Netflix may not be a member of the feted Magnificent Seven group of US tech giants, a positive update when it reports later today will still help kick earnings season up a gear and spread some much-needed good cheer around Wall Street, which is still feeling a bit off colour after its rate cut reset,” says AJ Bell Head of Financial Analysis Danni Hewson.
“Netflix has seen its shares shoot up more than 80% in the past year after a password crackdown and lower cost ad option boosted profits. But the streaming sector is cut-throat, and many viewers are now package hopping, taking out subscriptions for limited periods to binge on their favourite shows before moving on to the next service.
“There’s nothing to suggest Netflix won’t deliver a crowd-pleasing performance, but sometimes good news just isn’t good enough to justify the kind of valuation the company is currently enjoying.”
Markets / UK Airlines
“Generally, markets have been steady away today with the FTSE 100 at cruising altitude thanks to a boost from airline stocks.
“British Airways owner IAG was the biggest riser, easily slipping into the tailwinds created by a rousing update from its lower cost competitor EasyJet.
“Covid-scarred and rain weary Brits have shown they now consider a week in the sun a necessary expense – a much-needed mood lifter and a chance to make memories with friends and family. With the busy holiday period hurtling towards us, winter sun numbers suggest this summer could be another one for the industry to write home about.”
Rentokil
“Rentokil’s US operations aren’t delivering the goods for investors. There had been a great deal of excitement about the potential for US domination following the integration of Terminix, but something’s not quite come together just yet.
“The pest-control company’s latest results weren’t a total stinker, but they did fall short of expectations. By using words like ‘positive’ and ‘stabilising’ in the latest update, chief executive Andy Ransom didn’t exactly slap investors round the face with confidence.
“But this is a company with an incredible track record and investors will likely give it more time to really step up.”
These articles are for information purposes only and are not a personal recommendation or advice.