Netflix\u2019s profit continues to climb and money managers increase cash levels in portfolios to levels not seen since 9\/11. Read more in this edition of Steady Investor\u2019s Week.<\/p>\n
Netflix Earnings Soar<\/strong> \u2013 the Netflix model appears to be working very well. It\u2019s earnings season, and Netflix captured the spotlight this week after its Q3 report exceeded expectations by a healthy clip. Netflix\u2019s profit climbed from $29.4 million to $51.5 million quarter over quarter, with revenue jumping a blistering 32% to $2.3 billion. Earnings per share came in at $0.12, better than the street\u2019s expectations. Netflix\u2019s subscriber base grew nicely as well, as the company added over 3 million new users in the quarter, giving it over 85 million subscribers worldwide. Netflix continues to excel in original programming, and it is arguable that the global attention captured by its show \u201cStranger Things\u201d led to such strong numbers on the quarter. If you\u2019re considering an investment in Netflix stock, you may want to weigh the cost \u2013 NFLX trades at over 330x current earnings.<\/p>\n China GDP Growth at 6.7%<\/strong> – China continues to avert the largely feared \u201chard landing,\u201d delivering growth in-line with expectations. As it continues to transition its economy from an infrastructure and investment economy to a services and consumption-based one, it was expected \u2013 and even considered healthy \u2013 to see a drop-off in growth rates. But the slowdown has been mild, perhaps because China continues to spend more at the government level and bank lending remains at record highs. Debt is rising and the property market is arguably overheating, but a property bubble bursting in China would not be like one bursting in the U.S. The government would absorb or write-off most of those losses as opposed to it becoming a systemic crisis in the private sector.<\/p>\n Snoopy, You\u2019re Fired.<\/strong> \u2013 The cartoon icon of the insurance world has been given his walking papers, after 30 years of service. Just about everyone recognizes Snoopy as the long-time spokesman and blimpy pilot for MetLife, but as the company transitions from its focus on retail customers to group business, it felt it was time for a change. The company also unveiled a new tagline for its new image: \u201cMetLife. Navigating Life Together.\u201d Snoopy is said to be taking up golf and world travel as his next phase in life.<\/p>\n Money Managers are Holding More Cash<\/strong> \u2013 according to a recent study, money managers have increased cash levels in portfolios to levels not seen since 9\/11 and the aftermath of the Brexit vote. They pushed cash balances up from 5.5% last month to 5.8% in October, citing fears of a bond crisis and uncertainty over the election. Some may read this as a sign to be cautious in response to following the herd. But in our view the opposite is true! If you take a look at what the market does as managers increase their cash balances, it tends to go up \u2013 in the three months following 9\/11 and the Brexit referendum, the S&P 500 rose by 4.1 and 2.4 percent, respectively. Pessimism born out of false fears is bullish, in our view. Take this as a good sign.<\/p>\n Fueled by negative headlines, many investors make the common error of buying into false fears about the state of the market. How can one avoid this mistake? At Zacks Investment Management, we stick to the facts and always look to hard data to provide context for investing decisions instead of getting caught up in the headlines. To help\u00a0guide your investment decisions, download\u00a0our newly released Stock Market Outlook\u00a0report. Click on the link below to download your free copy today:<\/p>\n \n","protected":false},"excerpt":{"rendered":" Netflix\u2019s profit continues to climb and money managers increase cash levels in portfolios to levels not seen since 9\/11. 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