Netflix and Amex sink following disappointing Q4 results

Netflix shares fell after delivering disappointing guidance.  The first of the FAANG stocks to report had a small miss on revenue but the news what not all negative as they continue to see a strong trend in delivering global net paid adds.  The initial weakness was helped by lower than expected Q1 guidance for both EPS and revenue.  Before today’s earnings report shares had rebounded over 30% following the Christmas Eve selloff.  The recent rally was supported by the news that they will be raising their subscription prices.

American Express shares plummeted following mixed results.  The top-line saw revenue post the sixth consecutive quarter of growth with a $10.47 billion reading, analysts were expecting $10.57 billion.  The bottom delivered a strong beat with an EPS of $2.32, a strong beat of the $1.80 estimate.  For 2019, the company expects earnings to come in between $7.85 to $8.35, analysts’ forecast was $8.17.  Expenses did show sharp rises in both Marketing & Business Development and Card Member Services.  Total expenses increased 9% in the fourth quarter and 8% for the year.

The US indexes all saw modest bullish moves following the close.  The Nasdaq continues to advance above the 50-day SMA, but is finding resistance from the 50% Fibonacci retracement of the October high to December low move.  If price is unable to extend above the 6,750 level, initial support may be found from the 6,530 level.  To the upside, 7,000 remains critical resistance.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya