Netflix (NFLX)
Shares in Netflix were higher in premarket trading as the streaming service is set to announce earnings on Tuesday.
Investors are expecting another quarter of subscriber growth after Netflix rolled out ad-tier subscription plans and launched a crackdown on password sharing.
“Investors will be pleasantly surprised when they report their numbers. They should beat that 8.75 million [new subscriber] target, and I think they’ll probably beat it by a million or two,” Michael Pachter, Wedbush Securities managing director of equity research, told Yahoo Finance.
Netflix anticipates an 11% year-over-year increase in revenue to $8.7bn for the last three months of 2023. The company has also raised the profit margin guidance, expecting a 20% operating profit margin for 2023.
Meta Platforms (META)
Shares in Facebook parent company Meta has fully rebounded its terrible year in 2022 and closed Friday at a new record high of $383.45.
Meta shares rose by 194% in 2023, bouncing back after a disappointing 2022 when its share price tanked by 64%.
The metaverse push proved unpopular among investors, as the company’s augmented and virtual division reported $13.7bn of operating losses in 2022.
However, Meta CEO Mark Zuckerberg seems to have convinced markets as he focuses on artificial intelligence.
“Our long term vision is to build general intelligence, open source it responsibly, and make it widely available so everyone can benefit,” he wrote on social media. “We’re building massive compute infrastructure to support our future roadmap” for artificial intelligence.
Meta will have 350,000 Nvidia H100 graphics processing units (GPUs) and overall, almost 600,000 H100 compute equivalent GPUs by the end of this year, according to the Facebook boss.
Boeing (BA)
Shares in Boeing have plunged over 14% since a door flew out mid-flight earlier this month and it was still falling in premarket trading as the aviation regulator has demanded further safety inspections.
The US Federal Aviation Administration (FAA) on Sunday urged airlines operating the Boeing 737-900ER to conduct inspections of the panel that plugs the hole where a mid-plane exit would be and the bolts intended to hold the panel in place.
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This is another class of Boeing jet as the 737 Max 9 involved in the Alaska Airlines incident but it has the same optional door plug design that allows for the addition of an extra emergency exit door when carriers opt to install more seats.
The FAA said on Sunday that MAX 9 planes will remain grounded until it “is satisfied they are safe to return to service”.
S4 Capital (SFOR.L)
Martin Sorrell’s S4 Capital rallied 5% after reporting trading in the fourth quarter was in line with reduced expectations.
The digital ad agency said like-for-like net revenue would decline by about 4% when it reports its full year results for 2023, while its underlying profit margin would be in the range of 10% to 11%.
Net debt is expected to be towards the lower end of the guided range of £180m to £220m.
“While it is early in the year, we are not expecting 2024 to show macro-economic improvement, and client caution on marketing spend will likely persist, although not at last year’s level given interest rates are likely to fall over time,” Sorrel said.
S4 shares were down 80% in the last year.
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