Netflix (NASDAQ: NFLX) reported earnings, revealing that subscription growth was much lower than anticipated, with user growth declining after a record year during the world covid-19 pandemic. During the trading session, the company's shares fell by 10%. Furthermore, following the company's weak subscription growth for its movie streaming service late Tuesday, certain tech stocks and companies that benefited from stay-at-home demand may face pressure.
Q1 Revenue: $7.16 billion vs. $7.14 billion expected and $5.77 billion Y/Y
Q1 Earnings per share: $3.75 vs. $2.98 expected and $1.57 Y/Y
Q1 Net paid subscriber additions: +3.98 million vs. +6.29 million expected vs. +15.77 million Y/Y
Following the worst day in a year on Tuesday, European stocks opened mixed on Wednesday. Akzo Nobel (OTC: AKZOY), a Dutch paints firm, will concentrate today after reporting a 90 percent rise in first-quarter earnings and unveiling a $1.2 billion share buyback program. This year, the stock has already set a new high.
Despite the slow sales in the first quarter, Roche (SIX: R.O.), a Swiss drugmaker, confirmed its guidance for this year. Following a surge in first-quarter net profit, the Dutch chip-making equipment company ASML (AS ASML) increased its 2021 outlook. In other news, Heineken's (OTC: HEINY) shares gained 3.5 percent after the company reported higher-than-expected first-quarter beer volumes.
In March, consumer price inflation in the United Kingdom grew 0.7 percent, marginally less than the anticipated 0.8 percent, indicating that the Bank of England is not under imminent pressure to tighten its ultra-easy monetary policy and improving the U.K. economy's role in global markets.
As for the crude oil market, oil prices went down on Wednesday after some of the year's robust gains. It is due to concerns over a rise in COVID-19 case numbers in India that is the world's third-largest crude importer, coupled with a surprise build in U.S. crude oil supplies revived concerns about the fuel demand. The U.S. Energy Information Administration will issue crude oil inventory data on Wednesday.