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Netflix Inc – Shares are down more than 26% premarket after the streaming giant reported that it has lost over 200,000 users in its first quarter, falling well short of its forecast of adding 2.5 million subscribers. This is the first time in a decade that Netflix has seen customers exit. Moreover, Netflix has lost over 700,000 more customers, after suspending services in Russia. In response to this crisis, the company is planning to introduce a lower-priced version of its service with advertising. 9 Analysts downgrades this morning after reporting a net income of $1.6 billion in the quarter while also forecasting more losses to come.
Streaming Stocks – Lower as a group on the back of the NFLX report, DIS, PARA, ROKU, SPOT, WBD and even FUBO are all off between 3-6% to start. Multiple negative analyst moves on most in the space this morning.
Chip Stocks – Possible relative strength off a better than expected report from ASML Holdings who reported first-quarter sales of 3.5 billion euros and net income of 695 million euros, slightly ahead of expectations. Bookings remain strong as customers race to increase capacity amid a global semiconductor shortage. AMD, NVDA, INTC, ASML, TSM, MU
Lululemon Athletica – The yoga gear company unveiled plans to double its 2021 revenue of $6.25 billion to $12.5 billion by 2026. That implies a compounded annual growth rate (CAGR) of 15% for revenue through 2026, and the company expects CAGR for earnings per share to exceed revenue growth. The company also expects annual square footage growth in the low double digits percentage range.
IBM – Higher after reporting an adjusted quarterly profit of $1.40 per share, 2 cents above estimates, with revenue also coming in above analyst forecasts. IBM’s results got a boost from strong hybrid cloud platform business.
Meta Platforms – Back on watch after yesterday’s impressive rally, the stock sold off with the overall Nasdaq aftermarket following the NFLX report. Citigroup with an upgrade to “Buy” from “Neutra” with a $300 PT.
Palantir Technologies – Higher premarket for the second straight session after an RBC upgrade to Sector Perform from Underperform.
Westwater Resources – The retail favorite and rare earth mining stock is active after announcing late yesterday it will be breaking ground today on the construction of the Company’s graphite processing plant in Kellyton, just outside Alexander City, Alabama.
Aurora Mobile – Announced that its subsidiary Wuhan SendCloud Technology Co., Ltd. (“SendCloud”) has entered into a partnership with a market-leading global new energy vehicle manufacturer to provide email services to the automaker.
Windtree Therapeutics – Shares are higher after the company reported early mid-stage results for its istaroxime trial in cardiogenic shock.