Thursday, October 17, 2019
What a difference the past two months made for Netflix. It was just early July when the streaming video giant's stock was flirting with new record highs. Now after an unexpected loss of subscribers and increased competition in the streaming war, shares of Netflix erased all of its 46% gain for the year at its peak and officially entered negative territory on Monday. Netflix has been haunted by nonstop bad news in the past few months. First, its most popular show "The Office" was stripped from its platform by NBC. Then, Netflix was hit by a rare loss in U.S. subscribers and a large miss on international subscriber adds in the second quarter, which sent the stock plunging and suffering its longest losing streak in five years. A slew of announcements from media companies launching their own streaming services — Apple, Disney, AT&T's WarnerMedia, NBC — came as a last straw for the struggling stock. Some Wall Street analysts started losing faith in their darling stock. Barclays a..
The world's second-largest payment processor is approaching a decade-long run for the company's stock. Shares of MasterCard are getting a boost, as U.S. consumers embrace the secular shift from cash to card, and more recently card to digital. MasterCard's stock is up 46% this year, compared to the S&P 500 which is up about 20%. Even more remarkable, the financial company's stock is up more than 1120% since the start of 2011, while the broader market has only rallied about 140% since then. MasterCard, which has a market value of about $279 billion, has ended the last nine years in positive territory, with most years accounting for double digit gains in the stock. Some of MasterCard's success can be attributed to the health of the U.S. economy, currently in its longest expansion in history. A robust economy encourages customers to spend more, boosting fee income for MasterCard and other payment processors. "In the near-term, consumer spend trends appear healthy,..
For investors taking a breather from the chaos in August, buckle up as the market is about to go crazy again, Goldman Sachs warned. Wall Street is now inches away from reclaiming its record highs, but a rockier ride could be around the corner as stock volatility has been 25% higher in October on average since 1928, according to Goldman. Big price swings have been seen in each major stock benchmark and sector in October over the past 30 years, with technology and health care being the most volatile groups, Goldman said. "We believe high October volatility is more than just a coincidence," John Marshall, equity derivatives strategist at Goldman, said in a note Friday. "We believe it is a critical period for many investors and companies that manage performance to calendar year-end." The Cboe Volatility Index, a measure of the 30-day implied volatility of U.S. stocks also known as the VIX or "fear gauge," has been tame this month as trade tensions between the U.S. and China eased and Treas..
Weekly Briefing: EU leaders signal desire for Brexit deal despite limited progressIn this week's briefing, Anna Nadibaidze notes that while the EU27 do not want a No Deal Brexit, they also do not want the UK to remain. The post Weekly Briefing: EU leaders signal desire for Brexit deal despite limited progress appeared first on Open Europe.
Whatever the Brexit outcome, the UK and EU need to maintain dialogue on foreign policyOpen Europe's Anna Nadibaidze argues that both the UK and EU recognise the need to engage on foreign policy in any Brexit outcome, but future arrangements are likely to depend on the level of trust. The post Whatever the Brexit outcome, the UK and EU need to maintain dialogue on foreign policy appeared first on Open Europe.
A business (also known as an enterprise, a company or a firm) is an organizational entity involved in the provision of goods and services to consumers.Businesses serve as a form of economic activity, and are prevalent in capitalist economies,...
Home Depot's massive investment plan could prevent margin expansion, according to Guggenheim. The firm downgraded the home improvement retailer's stock to neutral and removed its $230 price target. "We find it difficult to see a path to EBIT margin expansion in 2020 as both a) investment spending and b) the associated D&A drag are poised to ramp," said Guggenheim analyst Steven Forbes in a note to clients on Tuesday. Home Depot kicked off its $5.4 billion investment plan in 2017, as the company works to invest across stores, online and supply chain segments. Although the plan is going well, some spending has been pushed to 2020 and capital expenditures are going to ramp next year and ultimately prevent margin expansion, Forbes said. Shares of Home Depot ticked more than 1% lower in extended trading following the downgrade on Tuesday. Guggenheim estimates the investment expenses in 2020 will have a 20 to 40 basis point hit to EBIT margins. Plus, operating expenses will also b..
Portuguese Finance Minister and Eurogroup President Mario Centeno rings the bell at the start of a meeting of Eurogroup Finance Ministers.FRANCOIS WALSCHAERTS | AFP | Getty ImagesEU nations are at odds on how to change rules on government spending in the 28-member bloc — an impasse that could potentially halt plans to revive the region's economy. The European Commission, the EU's executive branch, has started looking at ways to change its complex fiscal rulebook; but the initial debate between finance ministers at the weekend showed it will take time before any concrete proposals emerge. "I do believe that the simpler the rules are the better and the enforcement factor is essential, because if we do not obey the law, then the credibility of the whole system is very weak," Lithuanian Finance Minister Vilius Sapoka told CNBC before meeting his EU counterparts. Currently, the EU fiscal rules state that European countries should not have budget deficits higher than 3% of their a..
Quito, EcuadorGabrielle and Michel Therin-Weise | Getty ImagesAn unprecedented national data breach has seen detailed information of potentially every person in Ecuador leaked online, it has been revealed. More than 20 million people, including about 7 million children, had their data exposed by an unsecured server run by an Ecuadorian marketing and analytics firm, according to internet security firm vpnMentor. The population of Ecuador is approximately 16.5 million people, meaning that the entire population could have been affected by the breach. Ecuador's State Attorney General's Office said Monday that deceased citizens could account for the additional few million people affected. It is not yet known exactly how many people have been impacted by the data leak but it is thought to include full names, dates of birth, national identity card numbers, tax identification numbers, employment information, the names of family members, and more. It was first uncovered when vpnMentor..
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