Diamonds and Dogs
Chipotle Mexican Grill Inc. soared on Tuesday up $74.89 from its previous close to $664.91 a share. The more than 12% increase on the day for the American Fast Casual Dining franchise is due to reported earnings for its second quarter blowing past analyst's expectations. Analysts predicted earnings for $990 million for Chipotle's second quarter but actual earnings of $1.05 billion were reported today. This surge in earnings goes along with their increase in same store sales as well as the opening of 45 new locations across the U.S. The Chipotle franchise has shown that it is here to stay and Tuesday's reported earnings display that.
Netflix Inc. (NFLX)
Netflix Inc. is down today to $426.18 a share, a 5.63% decrease from the previous close. Netflix is considered the world's biggest Internet video service and it recently passed 50 million subscribers. Although things seem to be going well for Netflix, the stock dropped unexpectedly today because CEO Reed Hastings leaked that the company will start expanding into France, Germany, and other European countries in September. This was a red flag to many investors because the expansion is expected to cost big money. The stock is growing extensively so far this year at almost a 18% increase overall, and today should be considered a speed bump in the stocks long-term trajectory as it begins to expand to the European market.