Your Wednesday Blip 1/20/21

Your Wednesday Blip 1/20/21

Stocks rose to all-time highs as President-Elect Biden took the oath of office and became the 46th President of these here You-nited States. We can expect markets to digest a slew of policy and stimulus initiatives over the coming days. At the close the Dow posted a 257 point gain a 31,188. Trading volume was mixed and tech stocks were the leaders in todays action
Netflix posted it latest earnings report and it was a lulu. Revenue was up 22% beating estimates while net income fell 8% missing guru estimates. The stunner in the report however was subscriber growth which saw 21.9% growth and crested the 200 million mark for the first time. Netflix has $8.2 billion in cash and while they are profitable they continue to struggle with free cash flow which was down $284 million this past quarter. Not to worry however because company leadership increased guidance going forward and retail stock analysts all upped their recommendations for the stock to “buy” sending shares to an all time high.
Morgan Stanley reported better than expected earnings as revenue was up 5% while net income grew 60%. The company benefited from strong wealth management and investment banking services which jumped 46% due to Morgan leading the charge on IPOs like Airbnb. Morgan Stanley has grown this past year through acquisition as it purchased Etrade Financial and is now in the middle of buying Eaton Vance for $7 billion.