Monday 10 December 2018

Week 4: Netflix report will test tech appetite

Stock Image: AFP/Getty Images
Stock Image: AFP/Getty Images

Noel Randewich

Netflix's quarterly report today may offer an advanced preview of whether Facebook, Amazon and other heavyweights behind much of the US stock market's record-breaking rally can keep delivering.

Many of the S&P 500's largest companies - Microsoft, Apple, Alphabet and Amazon - have outperformed in the first 12 trading days of 2018, with investors betting strong earnings growth will justify tech valuations at their highest levels in a decade.

As of last Thursday, Netflix, which is due to report its quarterly results today after the stock market closes, had jumped nearly 15pc this year, outpacing the S&P 500's 5pc increase.

"Netflix is going to be a great early indicator of risk appetite for these high- volatility growth names," said Wedbush trader Joel Kulina.

"Netflix's drivers are very company-specific, but if this stock can deliver, there's no reason this whole market can't keep going higher."

The company faces increasing competition from streaming services including Amazon's Prime Video.

But investors remain optimistic about its ability to beat expectations. (Reuters)

Irish Independent

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