Netflix, Hasbro, and Skechers Rise on Easter/Boston Monday

Good evening, good lookin'. Here are the three things you need to know on April 22.

Apr 21, 2014 at 11:00PM

With European markets (still) closed for the Easter holiday, Wall Street enjoyed a slow Monday -- the Dow Jones Industrial Average (DJINDICES:^DJI) rose 41 points as investors digested some solid earnings reports.

1. Netflix sees earnings soar while planning a subscription price increase
The biggest online streaming company, Netflix (NASDAQ:NFLX), announced first-quarter earnings that beat Wall Street's expectations. Profit of $53 million crushed last year's $3 million, but user growth impressed most. Netflix nation is officially 48 million strong, with undoubtedly millions (billions?) more unofficial members freeloading off their friend's boyfriend's dad's username and password.

Netflix added 4 million new subscribers, including 1.75 million abroad. The huge additions prove Netflix is still growing like a growth company should, especially when compared with last year's 3.1 million additions in the first quarter. Today there are over 35 million American subscribers plus 13 million abroad.

In Ireland, Netflix made a price increase in January to test how people would respond; the reaction to the price jump was OK in the land of Guinness. So now it's going to happen here. Sometime before July, new subscribers will have to pay a buck or two more than today's $7.99-a-month rate for unlimited streaming content. It's the first price increase since 2011, and existing subscribers will still get $7.99 for a "generous period" of time.

Netflix suffered the past month as investors sold young tech stocks in favor of more boring "cash cows" that are proven profit generators. But stock of the Los Gatos, Calif.-based company is going loco since the glowing report -- up over 5% -- which should bring the year-to-date performance back into the positive.

2. Hasbro earnings saved by girls' toy sales
Play around with this: Shares of the legendary Rhode Island-based Hasbro (NASDAQ:HAS) popped 1.9% Monday after the company reported fun first-quarter earnings for the whole family. Revenues rose 2% to $679.5 million, resulting in $32.1 in earnings for the first three months of 2014. For Wall Street, that's arguably the best news out of the littlest state in the Union since the Brown men's lacrosse team beat Princeton this spring.

It's all about girls. While Nerf and Marvel products helped boost sales of boys' toys just a tad by 2%, female-focused products like My Little Pony Equestrian dolls sent girls' toy sales up 21%. And while domestically, Hasbro's toy sales slipped, consumers outside the U.S. apparently were in need of some fun, as international sales (especially in Europe and Latin America) rose 5%.

The takeaway is that it actually hasn't been fun and games for Hasbro recently. The company has been going through restructuring costs over 2013 and wasn't even profitable for the full year. Just last week, fellow toymaker Mattel reported an unexpected loss for the first quarter after unattractive holiday Barbie sales. And with more kids going for e-toys over physical ones you can hit each other with, the toy industry in general is shaping up for some change. 

3. Boston Marathon helps Skechers stock win
Forget the "swoosh," because shares of Skechers (NYSE:SKX) got a nice little publicity boost from the big race in Beantown. Shares of the shoe company sprinted up 1.9% Monday, after American runner Meb Keflezighi won the Boston Marathon with while sporting the Skechers Gomeb 3 speed shoes that he endorses. 

The takeaway is that Skechers (shockingly) weren't only relevant in the late '90s, when your little sister thought their light-up shoes worked well with back-in-style bell-bottoms. The company recently entered the performance-shoe market and signed Keflezighi up for his endorsement in 2011, introducing a line of "GOrun" sneakers later that same year. While the women's race was won in Nike shoes, the Cali-based Skechers hopes this finally gives credibility to its running line.

Tuesday:

  • Existing-home sales
  • First-quarter earnings reports: Harley-Davidson, McDonald's, Yum! Brands

MarketSnacks Fact of the Day: Chipotle evaluates each location based on the "Burrito Velocity" of its meal-making assembly lines -- the fastest restaurants complete 350 transactions per hour during lunch time (or six transactions per minute) compared with the national average of 115 per hour.

As originally published on MarketSnacks.com

Boost your 2014 returns with The Motley Fool's top stock
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Jack Kramer and Nick Martell have no position in any stocks mentioned. The Motley Fool recommends and owns shares of Chipotle Mexican Grill, Hasbro, McDonald's, Netflix, and Nike. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers