Netflix gets its second $500 price target this week as Wall Street love hits fever pitch
By Fred Imbert | @foimbert
- Pivotal Research Group analyst Jeffrey Wlodarczak raises his 12-month price target on the video-streaming giant on Thursday to $500 from $420 per share.
- “We expect yet another solid result (and 3Q guidance) in the seasonally weaker 2Q driven by content launches, aggressive increases in marketing spend and the natural momentum of the business,” Wlodarczak says in a note to clients.
- He also said the recently approved AT&T-Time Warner acquisition could boost Netflix shares moving forward.
New Zealand Dollar May Fall on US Data and Trade Wars. Not RBNZ
By Daniel Dubrovsky
The New Zealand Dollar came under selling pressure as increased trade war tensions between the US and China sent stocks lower during the first part of last week. There, US President Donald Trump threatened the world’s second largest economy with $200b in tariffs. Then, the Kiwi Dollar resumed depreciating as the markets anticipated a flatter outlook for RBNZ rates in the long run.
Looking to next week, NZD might have room to continue descending. The currency does face an interest rate decision from the Reserve Bank of New Zealand, but that may pass without much volatility. Since May’s monetary policy announcement, there has not been much of economic updates to perhaps materially alter their assessment. Only last week, we had an in-line local GDP report where growth clocked in at 2.7% y/y in Q1.
Finally, do keep an eye on how trade tensions continue brewing in not just the week ahead, but thereafter. Since the US additional tariffs threat, China has prepared a list of reciprocal measures. Signs of further escalation risks dragging down global stock prices and with it, the sentiment-sensitive New Zealand Dollar.
As such, the fundamental forecast for it will have to be bearish.
Spotify stock closes at record high after Macquarie starts coverage with $225 target
By Emily Bary
Shares of Spotify Technology SA SPOT, +1.77% rose 1.8% in Thursday trading, closing at $179.53, a new record for the music-streaming company. Macquarie analyst Amy Yong initiated coverage of the stock with an outperform rating and $225 price target, the highest target listed on FactSet. “We believe Spotify can hit its 30-35% long-term gross margin goal by ’22 as a result of its content relationships and as operating leverage kicks in,” Yong wrote. “We estimate MAUs will grow at a 23% 3-year CAGR through ’20, hitting 200 million by year-end from 170 million currently.” She predicts the company will pick up share in the U.S., the U.K., and Brazil, and she sees “greenfield” opportunities elsewhere. Spotify went public in early April, and its shares are up 13.5% so far this month. The S&P 500 SPX, -0.63% is up 1.7% so far in June.
Tesla Shutting Down Over a Dozen Solar Facilities
By Daniel Liberto
Earlier this month, Tesla Inc. (TSLA) announced that it would cut 9% of its workforce to plug its cash drain and boost its chances of turning a profit. According to Reuters, one of the biggest victims of these job cuts is expected to be the electric car manufacturer’s residential solar business.
Tesla refused to comment on which sites it plans to shut down and how many employees could be set to lose their jobs. “We continue to expect that Tesla’s solar and battery business will be the same size as automotive over the long term,” the company said in a statement to Reuters.
After the announcement Tesla fell 0.72%.
Bitcoin tumbles after Japan watchdog orders exchanges to review business practices
By Fred Imbert | @foimbert
- The digital currency hit a low of $6,307.31, breaking below $6,400 for the first time in about a week.
- The order led bitFlyer — the largest crypto exchange in Japan — to suspend the creation of new accounts while it makes improvements to its business.
- The agency gave the same order to five other exchanges after finding weaknesses in their anti-money laundering controls.