Netflix makes Wall Street fall



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Last Week’s Highlights

Netflix story getting into suspense

Netflix missed its goal for new subscribers during the fourth quarter of 2021 and its shares lost more than a fifth of their value. Following the earnings report after this quarter, many Wall Street analysts cut their price targets for Netflix stock, some by $200 or more. Netflix’s goal was to close the last quarter of the year with 8.5 million new subscribers, but the numbers closed at 8.28 million. This report alerted investors and many decided to drop this streaming platform. “The good times may be over,” stated Santosh Rao, head of research at Manhattan Venture Partners, referring to the quality and variety of content offered by Netflix.

Peloton jumping up and down

Following Thursday’s announcement that Peloton would stop producing bicycles and treadmills due to their low demand, the company’s shares dropped by 24%. According to several company reports, supply outstripped demand for these products. However, on Friday, Peloton’s shares rose 6.5%, after the company’s CEO clarified several points. He mainly said that production is not going to stop, but will be reduced, and promising preliminary results were released for its fiscal second quarter.

Coming Up This Week

Microsoft wants to level up

Microsoft looks to buy Activision Blizzard for $68.7 billion. The deal would close in 2023 and this would put Microsoft in third place of video game companies by revenue. Probably for Xbox and PC users, this is good news because it means that Microsoft’s Game Pass benefits will be better. It will be able to feature acclaimed titles like Call of Duty and Overwatch. However, for users of non-Microsoft platforms, such as Sony’s PlayStation or Nintendo’s Nintendo Switch, this could be bad news because games from developer Activision Blizzard will no longer exist for the consoles of their choice. They would be exclusive to Microsoft Game Pass and it would impact the video game market.

Intel looking to end chip shortage

Intel Corp. plans to invest $100 billion to build the world’s largest chip manufacturing complex in Ohio. All in order to end the global shortage of semiconductors that affects everything, from cell phones to automobiles. This strategy is intended to restore Intel’s dominance in chip manufacturing and leave the U.S. off its dependence on Asian manufacturers in this area. The chip shortage is expected to be present until 2023 due to the fact that the construction of the manufacturing complex would take some time. U.S. President Joe Biden congratulated Intel for its investment.

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Market News

A weak earnings report from Netflix causes its share price to drop and in consequence, a big fall on Wall Street. The Dow Jones index was down 143.07 points or 0.41%, the S&P 500 lost 36.52 points or 0.81% and the Nasdaq Composite fell 175.38 points or 1.24%.

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