The news comes as the Commerce Department reported that gross domestic product expanded by 3.5%, beating economic forecasts of 3.4% growth. Nonetheless, the drop in U.S. equities continued to overshadow the growth of the U.S. economy as investors continued to sell off.
“What’s happened is we have a number of outside issues overshadowing what has been strong economic data and overall good earnings,” said Michael Arone, chief investment strategist at State Street Global Advisors.
Positive earnings reports from the likes of other tech giants like Microsoft (etftrends.com/quote/MSFT) couldn’t save tech. Microsoft bested analyst expectations with $1.14 per share as opposed to the $0.96 per share expected by analysts, according to Refinitiv. In addition, revenue came in at $29.08 billion versus forecasts of $27.90 billion.
Netflix’s third-quarter revenue came in exactly at the estimated $4 billion expected per a Refinitiv consensus estimate, but bested earnings per share (EPS) estimates of 68 cents with 89 cents for the third quarter. Furthermore, subscriber additions came in at 6.96 million with domestic subscriber additions reaching 1.09 million versus 673,800 estimated, and international subscriber additions reaching 5.87 million as opposed to the 4.46 million estimated.
Furthermore, Netflix also announced a gain of 370,000 net memberships in the U.S. and 3.2 million internationally, beating its initial forecast of 2.3 million new users.
In the meantime, electric carmaker Tesla reported a surprise profit at the close of yesterday’s trading session, which was the company’s largest at $312 million.
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