Netflix Jumps on Earnings; Ford Taps Next CEO

The blue chips headed north once again on earnings excitement as Netflix surged after hours. Meanwhile, Ford named its next CEO.

Apr 21, 2014 at 10:00PM

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. 

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Ford and Netflix. 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

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, 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

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