This earnings season has been a mixed bag so far, with some notable casualties as well as rousing successes. Apple (AAPL) missed on its first report in 6 years, and another former market leader, has fallen harder than humpty dumpty. After last night's earnings report, the company is now left to pick up the pieces of what once seemed like an unstoppable media juggernaut.
When Netflix (NFLX) dramatically raised prices last year, they likely knew there would be some defections, but they certainly could not have expected the backlash they received from subscribers. Last night's 4th quarter guidance reflects that greater than expected cancellation, and investors piled out of NFLX after seeing the numbers. NFLX is currently down about 34% after hours, back to levels last seen in early 2010. At one point does NFLX become a buy? The stock will certainly be in play for traders, but it remains to be seen if the company and stock can make a comeback.
Hints dropped from NY Fed President William Dudley yesterday also served to boost optimism. The dollar slumped yesterday as Dudley said the Fed could do more to help the housing market. Similar rumblings came last week from Fed Governors Daniel Tarullo and Janet Yellen.
While a lot of fireworks have already gone off this earnings season, there are still some big names left to report. Amazon.com (AMZN) has a chance to emerge as a clear market leader after it reports earnings after the bell today. The Internet bookseller turned tech behemoth is attempting to penetrate several new markets, and it will be interesting to see how much of that is reflected in its earnings.
*DISCLOSURES: Scott Redler is long SPY, RENN, AAPL, QQQ, GOOG, XLF, SDS (inverse ETF), DANG, YOKU.
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