Shopping on Wall Street: the S&P 500 renews highs driven by Netflix

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By TP

More purchases in Wall Street (Dow Jones:+0.30%; S&P500:+0.61%; Nasdaq:+1.28%) after the rises on Tuesday, in a session in which the market quoted the inauguration of Donald Trump as president of the United States. Today, investors have positively discounted the Netflix results, which has led the S&P 500 to renew its all-time highs. However, the most bullish index has been the Nasdaqwhich has been boosted by companies linked to artificial intelligence after the multimillion-dollar investment announced by Trump. Arm, Palantir or Nvidia have finished with strong gainswhile the selective has also benefited from the Netflix effect. The streaming company has soared 9.69% in the stock market after beating expectations with its fourth quarter accountsin which you have registered a net profit of 1,869 million dollarswhich means doubling the 938 million obtained in the same period of the previous year. The income have also surpassed estimates by grow by 16%, to reach 10,247 millionwhile the consensus pointed to 10.11 billion. Another of the magnitudes of Netflix that the market has fallen in love with has been the number of subscriberswhich has risen by 15.9%, to 301.63 million. For Kathleen Brooks, director of analysis at XTB, «Netflix remains the king of streaming serviceswith 300 million subscribers around the world.» And all this, thanks to the success of live sports broadcasts. «Netflix exceeded market expectations last quarter and closed the year on a very high note (…) And it is not even due to a pandemic or a temporary situation (like the peak of 'The Squid Game'). It is because its strategic bet on broadcasting major sporting events live is paying off and points to further upside potential,» says Ipek Ozkardeskaya, an analyst at Swissquote Bank. However, investors' attention is now shifting from subscriber numbers to financial metrics, as this has been last time Netflix released quarterly user numbers. «We expect investors to focus on double-digit revenue growth, margin expansion and free cash flow expansion. Ongoing Live Sports Will Continue to Drive Users and Its Advertising Segment in 2025. If its content line continues to perform, that justifies the price increases, which means that Netflix's growth will not slow down in the short term,» comments Josh Gilbert, analyst at eToro.

TRUMP ANNOUNCES STARGATE

The market also remains attentive to the trump adswho has communicated a investment from the private sector up to 500 billion dollars to finance infrastructure artificial intelligence (AI). OpenAI, SoftBank and Oracle They will create a Texas-based joint venture called Stargate. They have committed to contributing $100 billion initially and then up to $500 billion over the next four years. In an appearance from the White House, accompanied by Larry Ellison, Sam Altman and Masayoshi Son, heads of Oracle, OpenAI and the Japanese holding company SoftBank, respectively, the new US president defended that This project «will allow the creation of 100,000 jobs» quickly. «This monumental company is a resounding declaration of confidence in the potential of the United States under a new president,» he assured. oracle stock have posted strong profits.

OTHER MARKETS

In other markets, oil West Texas has decreased by 0.49% ($75.46) and the Brent has given up 0.39% ($78.99). For his part, the euro has depreciated 0.16% ($1.0412), and the ounce of gold has gained 0.31% ($2,767). Furthermore, the 10-year American bond yield has revalued to 4.605% and the bitcoin has lost 2.02% ($104,320).

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