• US indices slide at the opening of the session
• Coca-cola (KO.US) earnings beat forecasts
• Netflix (NFLX.US) will release results after market close
US indices are trading in red after May future WTI oil contract plunged below zero for the first time ever and the June contract fell by as much as 42%. Conflicting news regarding alleged illness of North Korean leader Kim Jong Un raises some geopolitical concerns. President Trump is willing to temporarily suspend immigration to the US in order to stop the spread of the pandemic as the number of infected people in the US is approaching 800,000, and the number of fatalities exceeds 42,500.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
S&P500 (US500) opened lower today after US crude oil futures turned negative for the first time in history rising concerns of a deep global recession. If the bearish bias remains on the market then index might test 2648.00 pts support level. Source: xStation5
Netflix (NFLX.US) is scheduled to announce Q1 earnings today after market close. The video-streaming company has definitely benefited from the stay-at-home, shelter-in-place directive. Company's stock price surged around 40% since mid-March as investors expect solid results. Analysts see EPS at $1.64 vs $0.76 year ago. Consensus revenue estimate is $5.74 billion for expected y/y growth of 160%. The company maintained its share of the market in the previous quarter as the competition from Disney turned out to be less severe than previously assumed. Investor’s attention will focus on management's guidance for Q2 subscriber growth. The period is likely to benefit from more weeks of consumers sheltering at home than in Q1. Of course subscriber numbers for this quarter will also be important. Also investors will definitely be watching the cash from operations figure as it was negative for years.
However, the current valuation of the company may cause some concern. Based on earnings from 2019 Netflix shares are trading at P / E ratio of 98, which means that investors are paying $ 98.00 for each $ 1.00 of profit.
Netflix's (NFLX.US) profits are primarily affected by the number of paid subscriptions however company’s ability to raise prices has been limited due to competition from Disney and Apple. Source: Bloomberg, XTB research.
Netflix (NFLX.US) recently broke above key resistance level at $394.63 If the results for the first quarter are not disappointing, then upward move may accelerate. Source:xStation5
Coca-cola (KO.US) reported quarterly earnings of 51 cents per share, 7 cents a share above expectations. Revenue also came better than expected. The company announced a shift in consumer habits due to the coronavirus pandemic would materially impact results this quarter however hopes that situation will get back to normal in the second part of the year.
Coca-cola (KO.US) share price opened below major resistance level at $47.20 per share. If the current sentiment prevails on the markets then the price may be heading towards $36.28 per share. However, in case of a break higher, the next resistance to watch is located at $51.01 .
Source:xStation5
IBM (IBM.US) reported better than expected quarterly earnings of $ 1.84 beating estimate consensus of 4 cents per share. Revenues came below forecasts. The technology giant withdrew its annual forecast because of uncertainty about the pandemic. IBM announced that it has good financial situation and will continue to pay dividends.
Philip Morris (PM.US) reported quarterly earnings of $1.21 per 8 cents a share above estimates. Revenue also beat consensus. The tobacco producer announced that the coronavirus pandemic had limited impact on the first quarter results, however yearly figures may be affected.
Lockheed Martin (LMT.US) reported quarterly profit of $6.08 per share, beating market estimates of $5.80 a share. Revenue also surprise on the upside. The defense contractor said it is just beginning to experience the impact of the coronavirus in its various businesses and that the ultimate impact on 2020 results is unknown.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
