Ahead of the bell, futures on the Dow Jones Industrial Average are down 0.28% and S&P 500 futures are lower by 0.34%. Bed Bath and Beyond stepped up to the plate yesterday and scored big time with better-than-expected earnings and upbeat 2019 guidance. With the short-term trend now pointing higher, look for the stock to continue climbing toward the 200-day moving average near $17. Macy’s surprised the Street with an unscheduled announcement surrounding their sales performance in Q4. And M stock was summarily punished, suffering its biggest intraday decline since the financial crisis of 2008.
Netflix shares jumped nearly 3 percent in the premarket Friday after multiple analysts upgraded the video-streaming giant. "Given underperformance in 2H18, vs. traditional media, we believe the combination of positive revisions and emerging signs of long-term profit potential will yield share price outperformance," Patterson added. Netflix also received an upgrade at UBS after the bell on Thursday, with analyst Eric Sheridan hiking his rating on the stock to buy from neutral . "After six months of stock underperformance & key debates emerging about competition, margins & FCF, we think these debates are better understood by investors and reflected in the current stock price," Sheridan said in a note Thursday afternoon.
Netflix, Amazon on track to be the best trades of this decade. Barring a major downturn, the two stocks will end up as the best-performing assets of the decade. Since the start of 2010, Netflix has risen more than 4,000 percent while Amazon is up more than 1,100 percent. The two tech giants would join iron ore, the Nasdaq Composite, the Nikkei 225 in Japan and gold as the top-performing major assets throughout one decade since 1970 on Wall Street, according to data from Alpine Macro, a research firm based in Montreal. "A reoccurring phenomenon in our investment lives is that every decade there seems to be a big winning asset class or market," said Chen Zhao, chief global strategist at Alpine Macro, in a note.
Shares of Netflix Inc. ran up 2.5% in premarket trade Friday, putting them on track to open at a 3-month high, after no less than two analysts upgraded the video streaming service a week before it's scheduled to report fiscal fourth-quarter results. Raymond James analyst Justin Patterson raised his rating to strong buy, after being at outperform for at least the past three years. Late Thursday, UBS analyst Eric Sheridan raised his rating to buy from neutral and lifted his price target to $410 from $400. Netflix is scheduled to report fourth-quarter results on Jan. 17.
Netflix Could Stop You Sharing Your Account With Your Mates. The streaming industry is starting to take a dim view of the practise and according to The Verge, the British company Synamedia presented new software which aims to stop it altogether at the Consumer Electronics Show. The company's press release notes that 26 percent of millennials share passwords for their streaming service accounts, and goes on: "Until now most [streaming media] providers have turned a blind eye to casual password sharing, seeing it as a way to market their service to new audiences. But the industry now recognises that younger generations are used to accessing streaming services for free and rarely become paying customers." The streaming service would subscribe to Synamedia's service, which uses AI to look at factors like when and where the account is being accessed, what's being watched and on what kind of device to assess whether there's some dodgy account-sharing going on. If it's decided there is, the service suggests the account holder upgrade their account or shuts it down if it's suspected that a password's been sold on.
Netflix Inc. shares were up 1.7% in after-hours trading Thursday after an upgrade by UBS. In a note to clients, UBS analyst Eric Sheridan boosted his rating on Netflix stock to buy, from neutral. Netflix shares are up 21% year to date, compared to the S&P 500's 2.4% gain. Over the past 12 months, Netflix is up nearly 53%, compared to the S&P 500's 5.5% decline.