Who has replaced former market darling Apple with this imposter? The world's largest consumer tech company posted a dip in profitability for the first time since 2003, but that wasn't the worst part. Apple's guidance calls for an even bigger hit during the current quarter.
At the same time, former market laughingstock Netflix continues its redemptive ascent. Who says that there are no second chances in cyberspace?
Netflix closed out a record quarter where it landed more than 3 million net streaming subscriber additions. The leading video service's outlook was just as encouraging.
That's the way the market goes. Success isn't forever, as Apple investors are finding out. However, failure also doesn't have to be a permanent situation, as Netflix investors are discovering.
Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.
- Cliffs Natural Resources moved higher after posting results that may not seem all that inspiring at first. Revenue slipped 6% and adjusted earnings plunged 74% . However, the iron ore pellets producer was expected to each just half as much as it did. After seeing its stock shed nearly roughly half of its value this year, the bounce was more than overdue.
- Akamai also posted better-than-expected results, proving that being a content delivery network doesn't have to be a cutthroat business. J.P. Morgan upgraded Akamai on the strong report.
- Baidu was a rare tech loser on the week, slipping on Friday after posting a quarterly profit that fell well short of Wall Street's forecast. Sometimes even a stock trading at an earnings multiple in the teens yet sporting net profit margins of 34% and growing revenue at a 40% clip isn't good enough.
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