US stock markets were mixed overnight with the Dow Jones gaining 0.7% as old fashioned defensive companies delivered whilst the S&P 500 was flat and the Nasdaq fell by 1.2%.
Netflix share price whacked
The biggest driver was a cratering in Netflix (NASDAQ: NFLX) shares, which dropped more than 35% in a single session following a disappointing earnings update.
The group announced that net subscriber numbers had fallen by 200,000, well short of the forecasted 2.5 million net additions, although it includes the loss of 700,000 subscribers in Russia where services have been suspended.
This is the first time Netflix has lost subscribers in more than a decade, and the company is expecting to lose 2 million net subscribers in the June quarter.
Management are planning a crackdown on account sharing, with the company estimating that 100 million households are sharing their Netflix password with other family or friends.
Netflix’s selloff reverberated around the market, with other streaming services including Disney (NYSE: DIS) and Discovery (NASDAQ: WBD) both down more than 5%.
P&G and IBM report
Proctor & Gamble (NYSE: PG) and IBM (NYSE: IBM) were standouts, with the Dow stalwarts delivering better than expected updates.
PG’s profit was only slightly higher but management raised sales expectations to between 4% and 5%in 2023 as demand for healthcare products remains strong. Shares closed the session more than 2% higher.
IBM delivered a similar result with revenue up slightly, earnings down but strong improvement in its software revenue, up 12%, and consulting revenue, 13%, following its focus on cloud computing and data centres. The IBM share price jumped 7.1% on the news.
Elsewhere, US home sales fell by 2.7% in March as new borrowing costs and inflation hits consumer pockets.
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is tipped to open higher this morning. For a round-up of the latest news, check out my ASX 200 morning report.