(Bloomberg) — Stronger-than-expected quarterly results from Netflix Inc. fueled a rally in tech stocks, easing investor concerns about growth in one of the hardest hit sectors this year.
(Bloomberg) — Stronger-than-expected quarterly results from Netflix Inc.
fueled a rally in tech stocks, easing investor concerns about growth in one of the hardest hit sectors this year.
Shares of the biggest US technology stocks from Amazon.com Inc. to Alphabet Inc.
climbed by at least 1% in postmarket trading after Netflix added 2.41 million customers in the third quarter, exceeding Wall Street analysts’ expectations, and projected even more subscriber additions in the current quarter.
The Invesco QQQ exchange traded fund, which tracks the Nasdaq 100 Index, rose as much as 1.2% in postmarket trading.
The tech sector has struggled amid slowing growth and rising interest rates, which have also pressured the earnings multiples of the group.
The Nasdaq 100 Index is down 32% this year, as of its Tuesday close. The First Trust S-Network Streaming and Gaming ETF is down 38% off a peak hit earlier this year.
Shares of streaming-video companies also jumped after Netflix’s upbeat results with Roku Inc.
leading the rally on a gain of more than 4%. Among media stocks Walt Disney Co. gained 2.4%, Warner Bros Discovery Inc. added 2.6%, Paramount Global climbed 2.1% and fuboTV Inc. gained 2.4%. Netflix rallied as much as 15%.
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