The price of oil is declining after an earlier surge that saw it surpass $90 a barrel as Iran downplayed Israel’s response. Bitcoin has been rising ahead of the highly anticipated halving, which will decrease the token’s availability. Netflix shares plummeted after the streaming service’s first-quarter profits beat did not outweigh investor fears about its revenue forecast. Paramount Global’s shares have soared on a report saying that Sony Group’s Studio division has been in talks with Apollo Global Management regarding a joint offer for the media giant. Procter & Gamble, whose third-quarter revenues fell short of estimates but whose adjusted earnings per share beat consensus estimates, also saw its shares soar. The futures of U.S. stocks are mixed. Investors need to be aware of the following today.
1.Oil prices rise, then drop, following Israel’s attack on Iran
Brent crude prices jumped to $90 a barrel overnight before falling back as Iran downplayed damage caused by Israel’s retaliatory attack that had raised fears of a wider Middle East conflict. Brent crude futures are now down 0.5% to $86.67/bbl. The oil prices have soared in this year due to the worsening geopolitical situation in the Middle East, and production cuts from OPEC+.
2.Bitcoin gains ahead of halving token supply
Bitcoin is rising in anticipation of the so-called “halving” – whereby the amount of bitcoins created every 10 minutes will be cut in half. This event is expected to occur either today or on Saturday. Historically, this event has been followed by a hike in the price of Bitcoin. However, analysts disagree on whether these gains have been accounted for with recent token record highs. Bitcoin reached record highs of $73,000 in the last month. This was the first time that records were set before a halving. Bitcoin was trading at $65,000 on Friday morning after falling below $60,000 earlier as geopolitical tensions affected the digital currency.
3.Netflix Revenue Outlook is disappointing despite a surge in subscribers
Netflix shares have fallen more than 6% during premarket trading after the company’s surge of subscribers failed to satisfy investors who were disappointed by its revenue forecast. Netflix has managed to increase its subscriber base by 16% in just three months, despite a crackdown on password sharing. The company added 9.33 million paying subscribers in the period from January to March and ended the quarter with 269.6M customers. However, the company’s prediction of almost 16 percent revenue growth, at $9.49 Billion, for the second quarter was slightly behind estimates. Netflix estimated that revenue would increase by 13%-15% in the entire year.
4.Paramount Jumps in as Sony and Apollo May Be Making a Joint Bid
The stock of Paramount Global is up roughly 10% before the market opens after The New York Times reported Sony Group’s Studio Division was in discussions with Apollo Global Management to join a bid. According to a report citing “two people who are familiar with the situation,” Paramount and Skydance Media have yet to submit an official bid. Investors have expressed concern about the potential deal with Skydance, and Paramount initially refused Apollo’s offer to purchase the company at least for $26 billion including debt. This was due to concerns over the financing of the investment firm.
5.Procter & Gamble Reports Beat Q3 Adjusted Earnings, Slightly Lower Sales
Procter & Gamble reported sales of $20,2 billion for the third quarter of its fiscal 2024 which ended in March. This was up 1% from last year but lower than forecasts of $ 20,45 billion. The makers of Tide and Gillette announced that adjusted earnings per share increased 11% to $1.52. This was above expectations of $1.41. The consumer goods giant confirmed that its “all-in” sales growth range for fiscal year 2024 will be between 2% and 4% compared to the previous year. However, it raised its core EPS projection from 8% to 9% to a range between 10%-11%. In premarket trading, its shares were down by about 1%.
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