Netflix Jumps on Earnings; Ford Taps Next CEO

Stocks didn't miss a beat coming back from the long weekend, as all three indexes added to last week's gains today. As earnings season heats up this week, investors seem to be encouraged by mostly upside reports from the financial sector last week and await updates from heavyweights across the board over the next few days. Today, the Dow Jones Industrial Average  (DJINDICES: ^DJI  ) finished up 41 points, or 0.3%, with the pharma sector leading the way on reports that Pfizer had offered to buy AstraZeneca for $101 billion, though Astra rejected the proposal. Meanwhile, the S&P 500 increased 0.4% and the Nasdaq gained 0.6%.  

After hours, Netflix  (NASDAQ: NFLX  ) was among a host of companies reporting earnings, with the video streamer jumping 7% after announcing a price increase and adding 4 million streaming subscribers, bringing its total to over 48 million. Revenue jumped 24% to $1.27 billion, in line with estimates, while earnings per share surged to $0.86, better than the consensus at $0.83. Regarding the price increase, management said it would lift its monthly fee by a dollar or two on new members only on a country-by-country basis. In 2011, Netflix notoriously saw users flee when it upped prices on its combined DVD-and-streaming package by 60%. Tapping new members assures the company that it won't repeat that mistake again, however, and CEO Reed Hastings said it would enable the company to "acquire more content and deliver an even better streaming experience." Looking ahead, Netflix was optimistic about the current quarter, guiding EPS at $1.12 against estimates of $1.00. Once again, Netflix appears to be firing on all cylinders, but the high price tag should make investors question how long it can maintain this level of growth. 

Source: Fool Flickr.

Elsewhere, Ford  (NYSE: F  ) named current Chief Operating Officer Mark Fields as its next CEO, according to various reports. Fields will replace Alan Mulally, the man credited with saving Ford from bankruptcy during the financial crisis as the 68-year-old is expected to retire before the end of the year. Ford shares momentarily dropped on the news but recovered to finish down 0.1%. Fields would seem to bring a strong resume to the table, having overseen Ford's operations in North and South America as well as Mazda and Land Rover when they were part of the company in his 25 years with the automaker. Ford had said previously that Fields would be Mulally's likely successor, though no official announcement was given.

3 stocks to own for the rest of your life
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2923226, ~/Articles/ArticleHandler.aspx, 8/29/2015 9:50:28 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Jeremy Bowman

Fool since 2011. I write about consumer goods, the big picture, and whatever else piques my interest. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:55 PM
^DJI $16643.01 Down -11.76 -0.07%
F $13.74 Up +0.18 +1.33%
Ford CAPS Rating: ****
NFLX $117.63 Down -0.03 -0.03%
Netflix CAPS Rating: ***
AZN $4120.00 Up +36.00 +0.88%
AstraZeneca CAPS Rating: No stars
PFE $32.66 Down -0.60 -1.80%
Pfizer CAPS Rating: ****