The Witcher
By Wed, Jan 22, 2020
Hey Scoopers,
All three indices started the day after the long weekend in the red — more on that in the “Overall Market” section.
Beyond the overall market, Tuesday turned out to be a good day for one company who could use some good news after a rough 2019, while bad news continued for another company who also needed some good news but it didn’t get any — more on that in the “What’s Up?” and “What’s Down?” sections.
Oh, and by the way, have you heard about The Witcher that saved Netflix? — more on that in the “Water Cooler” section.
But first, here is a recap of what happened in the market on Friday:
Market Recap
- U.S. markets: All three indices agreed on the direction and finished Tuesday in the red zone.
- Cryptocurrency: Bitcoin’s price didn’t want anything to do with the stock market indices, and continued to hover near the $9,000 mark.
This Could Be 8x Better Than Buying Amazon In 1997
Discover The Wealth Building Secret That Powered Bill Gates, Steve Jobs And Mark Zuckerberg To The Top Of The Global Rich List.
Don’t miss your “Overnight Fortune” opportunity…
Where is the world’s economy headed?
The stock market indices finished Tuesday in the red, mostly in reaction to the economic outlook forecast by International Monetary Fund (IMF). While the global economy is expected to grow, however, the growth rate was revised down in the latest outlook report.
The economic growth in the U.S., the Middle East, and Central Asia is expected to slow down, while the growth rate in China and the Euro was revised slightly higher.
Overall, economists expect that the growth rate stabilizes globally and moves only sluggishly, mostly due to the global trade uncertainties and monetary policies in place across the world.
Okay, did we bore you with the economic forecast gibberish? Scroll down to the more fun parts of the Daily Scoop …
What a good day Tuesday was…
So, what happened?
Shares of Uber (Ticker: UBER) were up more than 7% on Tuesday. The company announced it sold its Uber Eats division in India to rival Zomato. This is a piece of good news that Uber needed after a rough 2019. Form the one hand, the acquisition gives Uber additional cash it can redirect to other priorities. Secondly, it focuses Uber on its core business of ride-sharing. While Uber still has to run its Uber Eats in the rest of the world, but, fewer headaches are still valuable.
In other news, judges dismissed a lawsuit against Uber. And, Morgan Stanley analysts included Uber in their top internet stock picks for 2020. It was all around a good day for Uber.
Corporate crises continued
So, what happened?
Shares of Boeing (Ticker: BA) were down more than 3% on Tuesday. The company announced a new timeline for the ungrounding of the 737 Max series. Since the software issues that led to the grounding of one of the company’s crown jewels, Boeing has been struggling to maintain its previous steady upward stock price movement. This corporate crisis is taking its toll on Boeing’s rather strong financial situation. It is forced to take on additional debt. It now pays all of its earnings to its shareholders in the form of dividends and then some. Moreover, it has to continue to pay its employees who are not working on the production of the 737 Max aircraft.
The moral of the story is that corporate crises always take longer than expected to impact the stock and even longer to recover from. It looks like Boeing still has to wait for a day without any negative news coverage.
Corporate crises continued
The Witcher Effect …
So what happened?
It’s no surprise to anyone that Netflix (Ticker: NFLX) keeps borrowing money to make original content. And, it has been long discussed among investors whether Netflix deserves such high valuations in spite of its outrageous borrowing habits.
However, one chart explains the power of Netflix’s original content. The company released a new series called The Witcher. It’s a story of a rugged mutated monster hunter based on a popular video game series by the same name. If you haven’t seen it, what else are you binging?
Aside from being-watching habits, in a clever response to the question about how Netflix can compete with the whole array of other original content by other streaming services, Netflix released this following chart:
It compares Google search volume for The Witcher with Mandalorian, The Morning Show and Jack Ryan, all very well-known original content from other well-known streaming services. And, none came anywhere close to The Witcher. Netflix may not be as safe as its leadership team wants us to believe, but the company is surely a good storyteller, even if it has only one chart to tell the story…
Okay, we just gave you the name of four fantastic original series. Why are you still here? The Scoop is over, go binge-watch something…
|
About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
