Netflix misses on earnings but blows away estimates on subscribers (2 min read)
Shares of Netflix surged in the after-market on Thursday after the company’s latest quarterly report showed it added more subscribers than expected. Although their earnings were a huge miss from estimates, the number of new paid subscribers were close to doubling what the company and analysts anticipated. Netflix said new subscribers were likely drawn from its popular releases during the quarter, like “Wednesday”, “Harry and Meghan”, and “Glass Onion”.
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Procter & Gamble revenue and profit fall as company looks to higher prices to offset declining sales (4 min read)
Procter & Gamble reported sales and profit on a decline from a year ago. However, its revenue was up 5% on a quarterly basis as a result of higher pricing, despite a decrease in total sales volume. The company said shrinking consumer demand was responsible for half of the sales volume decrease, while the other half was due to the restraining business in Russia and inventory reduction in China. P&G plans on doubling down on its price-hiking strategy even if sales volume continues to decrease.
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Investors are holding near-record levels of cash and may be poised to snap up stocks (4 min read)
Assets of money market funds held by retail and institutional investors are currently near record highs. As interest rates rose rapidly last year, money market funds are actually generating some returns, which makes it an ideal place to park assets while waiting for the right moment to invest again. This could be great news for stocks as there is a mountain of money on the sideline ready to be deployed back in the market. But the question is, when will it return?
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Jamie Dimon and James Gorman at odds over future rate rises (3 min read)
Jamie Dimon of JP Morgan and James Gorman of Morgan Stanley recently laid out divergent views on how high the Fed needs to raise rates to tame inflation. Dimon believes the peak rate will be close to 6% as there’s still a lot of underlying inflation. However, Gorman thinks that inflation has clearly peaked and reaching a 6% interest rate would be surprising. He predicts the Fed to hike 0.25% at its next two meetings before stopping to evaluate the impact on the economy.
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JEPI Is a Popular Active ETF for Income Investors (4 min read)
The JPMorgan Equity Premium Income ETF (JEPI) is the most talked-about ETF in the Reddit forum r/dividend. JEPI is an actively managed covered call S&P 500 ETF. The goal is to provide returns associated with the S&P 500 index with less volatility and additional monthly income. It has a 12-month yield of 11.29%, which is relatively high compared to other income funds. This article provides a backtest performance of JEPI and an analysis on what makes it so popular.
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Best Emerging Markets ETFs (9 min read)
The returns on emerging markets ETFs have extremely lagged the S&P 500 since 2007. Some might argue that the current fundamentals of emerging markets are extremely undervalued and are poised for a long overdue market comeback. For those anticipating an opportunity in this asset class, this article put together a list of the top 100 emerging markets ETFs. They are ranked based on expense ratio, spreads, diversification, and FactSet ETF scores.
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That's it for today! You can reply to this email if you have any comments or feedback.
Thanks,
Thomas
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