Netflix [NFLX] - Last Close: $201.63
Netflix is climbing higher after a Tuesday-evening earnings report.
The streaming company reported its second-quarter results yesterday evening, and the market seems to be happy with the results.
Netflix earned $3.20 per share on revenues of $7.97 billion in Q2. The numbers beat the Street's EPS target of $2.94 but missed the consensus revenue estimate of $8.03 billion.
The company also reported a smaller-than-expected subscriber loss and said it hopes to return to growth in the third quarter.
Netflix also says it will continue its efforts to implement a paid accounting sharing options for subscribers and a lower-priced subscription tier with ads, which it hopes will boost revenues.
NFLX is one of the top S&P 500 stocks with a 6.0% gain.
Our Take: Netflix has had such a rough run that it's starting to look like a value stock. Its P/E ratio has fallen to just 18.87, and the chart shows some hints that the stock's decline may have bottomed out.
Omnicom Group [OMC] - Last Close: $67.41
Omnicom's latest earnings report is boosting shares in today's premarket.
The marketing firm is trending after posting a double-line beat on its Q2 earnings results.
Omnicom earned $1.68 per share on revenues of $3.57 billion, beating the Street's target of $1.58 EPS on $3.47 billion in sales.
Overall, the company posted an organic growth rate of 11%.
OMC is also one of the top performers in the S&P 500 this morning with a 7.3% gain on active trading volume.
Our Take: Omnicom's results are encouraging, but marketing budgets are one of the first things that get cut when corporate profits take a downturn. If you think a recession is in the cards, Omnicom is likely to feel the sting at some point.
