Morning News

Netflix Stock Jumps 13% After Price Hike Announced

By Nadine PEREIRA
Published on Wed, 01/22/2025 - 00:00

Topic of the day

Netflix is raising prices across its existing U.S. plans, aiming to capitalize on surging demand after the streaming service posted record subscriber gains in the fourth quarter. The company’s ad-supported tier will cost $7.99 a month, up from $6.99, while the cost of the premium tier is increasing by $2, to $24.99. Netflix said Tuesday that it brought in 18.9 million new subscribers in the fourth quarter, a 44% increase from a year earlier, and raised its 2025 revenue guidance slightly. Shares in the company jumped more than 13% in after-hours trading. The streaming service beat its revenue and profit projections for the fourth quarter as fans flocked to watch the second season of “Squid Game,” one of the most-watched seasons for any of the company’s original series. The action thriller “Carry-On” vaulted into the top 10 all-time films on the service. Netflix has pushed deeper into livestreaming events, including a November heavyweight boxing match between Jake Paul and Mike Tyson. The match drew 60 million households globally despite technical hiccups.

Swiss stocks

Despite moving along the flat line till more than a couple of hours past noon, the Swiss market closed on a bright note on Tuesday as stocks gained in strength past midafternoon on strong buying support. The benchmark SMI ended with a gain of 73.94 points or 0.61% at 12,111.16, the day's high. Straumann Holding climbed about 2.5%. Logitech International gained a little over 2%, while Alcon and Schindler Ps closed higher by 1.9% and 1.84%, respectively. Sonova, ABB, Sandoz Group, Swatch Group, Roche Holdings, Lonza Group, Richemont, Partners Group and SGS gained 1 to 1.6%. Julius Baer and Holcim advanced nearly 1%, while Lindt Spruengli gained about 0.8%. Avolta closed stronger by about 2.3% after announcing its entry into Tunisia with a contract to open 15 duty-free stores in five international airports across the country. SIG Group closed 1.51% down. Adecco ended nearly 1% down, and UBS Group closed down 0.66%.

International markets

Europe
European stocks closed higher on Tuesday, thanks largely to gains in the banking sector. Investors continued to assess the likely moves of Donald Trump, who began his second term as U.S. President, by signing a slew of executive orders and signaled imposition of tariffs on imports from Canada and Mexico. Investors also closely monitored developments at the World Economic Forum that kicked off on Monday in Davos, Switzerland. Auto stocks had a tough outing as Trump revoked the previous administration's executive order on electric vehicles. The pan European Stoxx 600 climbed 0.4%. The U.K.'s FTSE 100 gained 0.33%, Germany's DAX closed up 0.25% and France's CAC 40 ended 0.48% up, while Switzerland's SMI settled higher by 0.61%. Among other markets in Europe, Denmark, Finland, Greece, Ireland, Poland, Russia and Sweden ended higher. Netherlands, Norway, Portugal and Turkiye closed weak, while Austria, Belgium, Iceland and Spain ended flat. In the UK market, Lloyds Banking Group climbed 4%. Games Workshop, Endeavour Mining, Airtel Africa, Ashtead Group, AstraZeneca and Smith (DS) gained 2.2 to 3.2%. In the German market, Siemens Healthineers rallied about 3.3%. Siemens Energy gained nearly 3%. Sartorius closed with a gain of 1.8%. Merck, Siemens, Rheinmetall and Henkel also closed on a firm note.

United States
After a positive start, U.S. stocks largely kept moving higher on Tuesday, and the major averages all ended the day's session on a firm note. A drop in bond yields and optimism about a few interest-rate cuts this year contributed to the positive sentiment in the market. Investors picked up stocks as worries about tariffs eased a bit as Donald Trump, who signed a slew of executive orders on Monday soon after being sworn in as the 47th President of United States, refrained from signaling trade barriers against China. He threatened to impose tariffs of up to 25% on Mexico and Canada but did not enact a policy. The Dow closed up 537.98 points or 1.24 percent, at 44,025.81. The S&P 500 ended higher by 52.58 points or 0.88 percent, at 6,049.24, while the Nasdaq settled at 19,756.78, gaining 126.58 points or 0.64 percent. Oracle surged nearly 7.5 percent, buoyed by reports that Trump will announce private sector investment of up to $500 billion to fund artificial intelligence infrastructure. Charles Schwab climbed nearly 6 percent on strong earnings updates. 3M moved up sharply, buoyed by stronger than expected quarterly earnings. General Motors, Moderna, Dollar General, Micron Technology, Southwest Airlines, Alaska Air, Delta Airlines, Caterpillar, Nike, Starbucks and United Airlines Holdings gained 3 to 5 percent. Nvidia, Boeing, Amazon, Target, Eli Lilly, US Bancorp, American Express and Netflix were among the other notable gainers in the session. Walgreens Boots Alliance tanked nearly 10 percent, weighed down by the Deapartment of Justice's lawsuit against the company. The company, which made a multibillion-dollar settlement over opioid prescriptions two years ago, now faces a suit that alleges it despensed 'millions of unlawful prescriptions. Apple Inc. shares declined sharply following a series of downgraes due to weak iPhone sales and somewhat disappointing performance in hardware and services segments.

Asia
The stock markets in East Asia and Australia followed Wall Street's positive lead in the course of trading on Wednesday. The strongest upward trend was in Seoul (+1.1%). In Hong Kong, the upswing of the previous days continued with a rise of 0.8 per cent, while in Tokyo the Nikkei 225 index gained just 0.3 per cent to 39,028 points. Once again, little is happening in Shanghai. The Composite Index is just in the red. However, like Hong Kong, it has recovered from its early losses. Sydney has already closed trading with a gain of 0.7 per cent.

Bonds
Yields on the U.S. bond market fell. The yield on ten-year paper fell by 6.1 basis points to 4.57% on Tuesday. Bond investors were focused on what did not happen in Washington on Tuesday. At bond giant Pimco, Libby Cantrill, head of public policy, said: "Tariffs may not have been increased on Monday, but we would urge folks not to read too much into what is more likely a delay, rather than an absence of future tariff actions."

Analysis
JP Morgan lowers Apple to USD 260 (265) – Overweight
UBS raises Ahold Delhaize target to EUR 28 (27) – Sell
Deutsche Bank lowers Teamviewer to 12 (14) EUR – Hold

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