The entertainment and communications are showing divergent performance. After markets closed on Tuesday, Netflix (NFLX) stock lost 6.32% when it posted quarterly results.
Netflix earned $5.87 a share on revenue of $11.51 billion, up by 17.2% Y/Y in the third quarter. For Q4, it expects revenue of nearly $12 billion. Its EPS forecast of $5.45 exceeds estimates. Unfortunately, the firm had to pay $619 million to Brazilian authorities to settle a multiyear tax dispute.
Warner Bros Discovery (WBD) reportedly rejected an offer from Paramount Skydance (PSKY). WBD stock gained ~ 11% on a report that it would not take a $23-$24 per share offer.
General Motors (GM) jumped by 14.86% to close at $66.62, a new high. Tariffs did not hurt results as much as was thought. This enabled the firm to beat Q3 expectations, where market share, profit margins, and its restructured China business impressed markets.
GM is forecasting an EPS of up to $10.50 this year.
Beyond Meat (BYND) jumped by 146% to close at $3.62. Investors should be wary of this rally. Its deal with Walmart (WMT) expanded their distribution partnership. Short sellers panicked on the news. However, the deal is not likely to prevent the firm from losing more money in the quarters ahead.
