Diamonds and Dogs
Big Blue moving in the right direction? IBM (IBM) is up 4% following the usual lackluster earnings. IBM beat earnings thanks to share buybacks, but revenue declined 4%, the fourth consecutive quarterly decline for sales. However, IBM has completed the acquisition of Red Hat last week for $34 billion in cash. The deal is part of the company's effort to bolster their software division and hopefully create a catalyst for IBM to return a growth strategy.
Netflix (NFLX) has seen better days. The subscription video-on-demand service is down 11% to a six month low following earnings. Earnings were actually good with revenues rising 26% to $4.92 billion, but the guidance was pretty bad. Netflix lost 126,000 U.S. subscribers in the second quarter, vs. its forecast for a gain of 300,000. It also badly missed its target for international subscribers expecting to add 4.7 million international subscribers in the June quarter, but only brought in 2.83 million new subscribers. At least five downgrades for the stock today.
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.