Diamonds and Dogs
Netflix (NFLX) is catching up to Disney. Netflix is jumping 10% to new highs following better than expected earnings, sales and subscription numbers. The Internet cable company reported in line earnings as sales rose 32.6% year over year to $3.29 billion. International revenue grew 59% year over year. The reason the stock is up so much is mostly due to net new subscribers of 1.98 million domestically verse 1.25 million guidance while International net sub additions grew to 6.36 million verse 5.05 million guidance. The analysts loved the news with numerous upgrades with price targets of $280, $281 and $300. The Wedbush analyst remains one of the few bears with a $110 price target.
P&G (PG) having a tough day. The world's largest consumer goods maker Procter & Gamble reported better-than-expected sales and profit for its second quarter on Tuesday, but the stock is lower by 3% as investors focused on a drop in gross margins. Margins fell by nearly 1 percent hit by higher commodity costs, investment outlays and cuts in prices in the grooming business that includes Gillette razorblades. The company has just quelled activist investor Nelson Peltz's attacks on its strategy by offering him a board seat but is struggling to boost Gillette sales against cheaper competitors like Unilever's Dollar Shave Club.
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