Netflix was worth more than 12 percent on the stock exchanges in New York on Wednesday. The streaming service gained many more subscribers in the past quarter than experts had expected.
On the other hand, Netflix struggled with a contraction in the number of subscribers in the two previous quarters. Revenue and profit were also higher than analysts and investors had expected. As a result, JPMorgan analysts raised the recommendation for Netflix.
However, the mood on Wall Street was somewhat hesitant after the strong recovery in recent days. Optimism about the better-than-expected quarterly figures of companies seems to be giving way again to concerns about high inflation. Investors fear that central banks worldwide will continue to raise interest rates sharply to contain the ongoing rise in consumer prices. However, the higher interest rates slow down economic growth and could even trigger a recession.
Shortly after the start of trading, the Dow Jones index was 0.1 percent lower at 30,493 points. The broad S&P 500 fell 0.5 percent to 3701 points, and the tech gauge Nasdaq lost 0.8 percent to 10,687 points.
Procter & Gamble rose more than 2 percent. The food group, known for brands such as Pampers, Gillette and Ariel, recorded more sales and profits than analysts had expected last quarter, partly thanks to price increases. However, the company sees full-year profits at the lower end of its previously issued forecast due to the more expensive dollar and high inflation. The turnover forecast was also lowered.
Tesla lost 0.5 percent. The electric car manufacturer will release its quarterly results after the closing bell. Earlier this month, it was announced that Tesla delivered fewer new cars in the third quarter than experts had anticipated in advance. Elon Musk’s company says it is struggling with logistical problems, making it more difficult to get the cars to customers.
United Airlines rose more than 6 percent. The airline performed well last quarter thanks to the strong recovery in demand for air travel after travel restrictions during the corona pandemic. The company is also optimistic about the results in the current quarter.