I can’t remember the last company that committed such an unforced error as Netflix has, New Coke maybe? From Reuters:
Netflix Inc lost more customers than it anticipated in the third quarter and warned of still more defections to come, pushing its shares down 27 percent as the one-time Wall Street star grapples with the fallout from a price increase and other unpopular moves.
The top video rental company reported a better-than-expected 49 percent surge in third-quarter revenue to $822 million, surpassing Wall Street’s target of about $812 million. It also beat expectations on earnings per share.
But investors — mindful of how the company led by CEO Reed Hastings had driven away customers in recent months and damaged its credibility with a price rise and other high-profile stumbles — focused on the fourth-quarter warning.
Netflix shares plummeted 27 percent to $86.70 in after-hours trading, about 70 percent below the high of just under $300 per share in July.
Financial companies, represented by the Washington-based IIF, proposed a loss of 40 percent on Greek debt, said a person briefed on the matter who declined to be identified because the talks are confidential. Luxembourg’s Jean-Claude Juncker, who leads the group of euro-area finance ministers, said yesterday that talks on private-sector involvement in a second aid package for Greece are focusing on losses of 50 percent to 60 percent.
Economics:
- 9:00 a.m. ET: The Case-Shiller home-price index for August is due. Are home prices on the rise? Will it help to convince you to buy my house from me if I tell you that they are? Then yes, yes, they are. Skyrocketing.
- 10:00 a.m.: The FHFA home-price index that nobody cares about is due, also for August. If you read carefully, you’ll find yet another reason it’s great time to buy my house.
- 10:00 a.m.: The Conference Board consumer confidence index for October is due. Nobody’s watching this any more because consumers are apparently still spending, despite having no income growth and suffering from a deep lack of confidence. Economists think confidence rose to an abysmal 47 from a slightly more abysmal 45.4 in September.
Earnings:
- Before the bell we hear from:
- DuPont
- Xerox
- Illinois Tool Works
- 3M
- Reynolds American
- UPS
- National Oilwell-Varco
- Simon Property
- Ecolab
Later we get results from:
- Cummins
- PACCAR
- US Steel
After the bell we hear from:
- McKesson
- Western Union
- C.H. Robinson Worldwide
- Range Resources
- FMC Technologies
- Boston Properties
- Broadcom
- Amazon.com