SAN FRANCISCO (Reuters) – Shares of Netflix jumped 3 percent on Tuesday ahead of the streaming video service’s quarterly results, with traders expecting a larger than normal reaction from the stock as new competition looms from Walt Disney Co.
Netflix will be the first to report March-quarter earnings among major high-growth firms and Wall Street’s reaction to its results will be viewed as an indicator of what to expect when Amazon.com Inc and Facebook Inc report next week.
Concern - Competition - Market - Netflix - Proxy
“There is some concern that real competition is entering the market, but Netflix is still a good proxy for investor risk appetite, especially for technology,” said Joel Kulina, Senior Vice President of Institutional Cash Equities at Wedbush Securities.
Options traders expect Netflix shares to swing by about 7% in either direction in the session after its report, which is expected after the market closes on Tuesday. That is more than the median move of 5.4% in Netflix’s eight most recent quarterly reports, according to options analytics firm Trade Alert.
Jan - Results - Netflix - % - Concerns
On Jan. 18 following its last quarterly results, Netflix dropped 4% over concerns about slowing growth, and investors are now focused on how Chief Executive Officer Reed Hastings plans to...
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