Diamonds and Dogs
The markets and the FAANG stocks are rebounding. After a 15% drop in the last week, Netflix is rebounding 5% on a upgrade from Citigroup with a price target of $375. The analyst believes the recent sell-off as an opportunity to own a high-quality, recurring revenue franchise with attractive upside potential. Netflix made news this week with plans to invest $1 billion over the next 10 years in a studio in New Mexico, creating 1,000 jobs annually. Netflix has also picked up a new movie and project starring one of Hollywood's go-to hit-makers, Dwayne "The Rock" Johnson.
PNC Bank (PNC) going in the wrong direction. PNC is down 7% not far from a 52 week low following earnings. The company actually beat by 10 cents as revenue rose 5.6% year over year to $4.36 billion, but disappointing quarterly loan growth and only a small improvement in lending for the final three months of the year has shareholders hitting the sell button.