Last week Netflix released their quarterly report. Unfortunately, even thought they exceeded expectations the stock plummeted quickly on the 18th. This left many investors, including myself stumped. I was pleased to see the great earnings on Monday, but was alarmed to see the stock dropping at a rapid rate on Tuesday and Wednesday. The question is why? Many suspect, including Marketwatch.com that the reason the stock did not continue its previous growth was because Netflix can’t maintain consistent subscriber growth. While Netflix was able to increase revenue they are consistently gaining less and less subscribers.
In the past few years Netflix has tried everything to increase the amount of subscribers. They have created original content for their show that is only available on Netflix. They have attempted to increase international subscribers but fail to reach different cultures due to the fact that they have limited content for different regions. They have attempted to address this by adding new content, but this had little effect. Despite their best efforts, Netflix can’t seem to meet expectations for growth. For investors, this is a big problem. Until Netflix resolves the issue of limited subscriber growth I am pulling my investment. I have made a decent amount of money with them so far, and I am sure that they can resolve this issue. All things considered, they did change television as we know it.
Thats all I have for this week. I hope this blog was entreating and informative for you. As always, if you have any questions or comments feel free to leave a comment or contact me directly. Until next time!
In the last decade tech has been a large part of the US economy. There are high expectation for tech companies in the coming months with President Trumps plan to cut taxes and regulations on these industries. So, should you feed into the hype?
Tech can be a very unstable industry to invest in. Smaller tech companies like Nvidia are very volatile, and unpredictable. Last month they fluctuated from $98 to $109, and back down to $103. Even big companies like Apple are not a 100% safe bet. May 13th of last year apple hit it’s lowest price since October of 2014. However, since then they have grown at a stable yet impressive rate.
No one can deny that americas use of tech will continue to grow. In my lifetime I have seen the cellular phone develop from a large bulky device with a big antenna to a sleek, innovative machine. In just 21 years. Time will only tell what kind of amazing devices we have at our disposal in another 20 years.
To come back full circle. Should you let President Trumps proposal on changing the taxes and regulations on the tech industry influence your investing strategies? My advice would be to stay away from small, and risky companies strictly because they are all around hard to predicts. Instead, invest in large name tech companies that are showing strong signs of innovation such as Apple and IBM. I would strictly invest in companies that are American based, due to the fact that President Trump’s motto is “America First.” Another thing to think about is the fact that a lot of these tech companies heavily rely on foreign labor and foreign parts. So that may be a big factor.
That’s all for this week. I hope this weeks blog was helpful. As always if you have any questions please do not hesitate to leave a comment or ask me directly! Till next time!
My recommendations on the three most popular e-brokers.
One of the biggest struggles I faced when I started investing was choosing which brokerage firm to invest with. The good news is there are plenty of options. First, you have many factors to consider. First, what sort of investing to you want to do. Are you looking to just put some money into a safe mutual fund or ETF (Exchange Traded Fund), or do you want more control to invest in any stock you so choose. Second, how about fees? What are you willing to pay? There are many investing applications that only charge a monthly fee, or a very low per-trade charge. To help you decide who you want to invest your money through I have created a list of the top three investing apps along with the pros and cons to each one.
First up, ETrade. ETrade is one of the most popular investment companies today. Etrade’s most attractive feature is that it allows you to invest with any publicly traded company. Another benefit of using ETrade is that there are multiple charts and ratios you can use to make wise investing decisions. One of ETrade’s draw backs is the fees, each trade is $9.99. Compared to other e-brokers this is a fairly high trade rate.
Next, is an investing app called Robinhood. The great thing about Robinhood is there are ZERO fees! However, there are limited trading options and the app is only accessible on a mobile device. Here is Business Insiders review/take on Robinhood.
The last App is Stash. This is another investing application. However, they have take a lot of the scary and challenging aspect of investing. What they have done is composed a variety of ETF’s to choose from. They give a description of what each ETF includes, and its risk level. There are fees for this app however. If your account is less that $5000 there is a $1 a month charge. If your account is more than $5000 you will be charged a .25% annual fee.
I hope my first blog was informative, and helpful. If you have any questions or comment please do not hesitate to directly contact me, or leave a comment below! Until next time!