- The net increase in paying subscribers of Netflix's global streaming media service in the quarter was fewer than analysts had expected.
- Snap's stock price surged 22.9% before the market on Wednesday, and its third-quarter revenue was $677 million.
- The US dollar index fell 0.3% to 72.76.
Before the market opened on Wednesday, Netflix’s stock price plunged 5.4%. The third-quarter revenue was $6.436 billion, an increase of 22.7% this year. It was expected to be $6.39 billion. Net profit was $790 million, and EPS was $1.74, which was lower than the expected $2.13.
In addition, the net increase in paying subscribers of Netflix’s global streaming media service in the quarter was 2.2 million, which was fewer than the 3.3 million analysts had expected.
At the same time, Snap’s stock price surged 22.9% before the market on Wednesday, and its third-quarter revenue was $677 million, an increase of 52% year-on-year, and is expected to be $550 million.
Net loss was $200 million, a decrease this year of 12%. Adjusted earnings per share were $0.01, better than expected loss of $0.05 per share.
Funds Gather in IT Stocks
According to data from the survey and analysis website QUICK FactSet, the total market value of listed companies worldwide reached $91.3 trillion on October 20, a record high.
Among them, the total market value of IT-related industries, including electrical equipment and information services, has increased to 22% of the overall market value, which is the largest proportion in terms of industry.
US Stocks Mixed, GSX Fell More than 20%
Investors are concerned about the Beige Book data and the progress of the aid bill. At the same time, the US Congress, the two parties, and the White House failed to reach the aid bill before the deadline.
Both brought a drag on the market. US stocks opened with mixed results. Chinese education stocks fell, GSX fell over 20%, and Snap soared nearly 23%. Netflix fell more than 5%.
The Dow Jones Index fell 32.66 points, or 0.12%, to 28,276.13. The S&P 500 Index fell 1.93 points, or 0.06%, to 3,441.19. The Nasdaq Composite Index rose 3.84 points, or 0.03%, to 11,520.33.
European stocks fell sharply across the board, with the Stoxx Europe 600 index futures falling 0.8%. At the close, the Shanghai Composite Index fell 0.09%, the Nikkei 225 index rose 0.31%, and South Korea KOSPI index rose 0.53%.
Oil prices fell by nearly 2%, as US crude oil inventories increased market concerns about oversupply. WTI crude oil futures fell 1.6% and reached $41.02 per barrel.
Brent crude oil futures fell 1.7% to $42.45 per barrel. US COMEX gold futures rose 0.4% to $1922.8 per ounce. The US dollar index fell 0.3% to 72.76.
U.S. Coronavirus Pandemic Worse Than Reported
Statistics from Johns Hopkins University show that as of 8 PM Eastern Time on Tuesday, there were more than 8.12 million confirmed cases of new coronavirus in the United States.
Although the data is not optimistic, a set of confidential data exposed recently shows that there are a large number of undisclosed cases in prisons, schools, and meat processing plants in Illinois. This indicates that the US epidemic may be worse than it seems.
At present, epidemiologists have warned that the third peak of the epidemic in the United States may occur, and it is mainly concentrated in the Midwest and the plains.
The New York Times also stated that the third wave of epidemics in the Midwest and West of the United States was the most serious.