Oil prices are retreating following an earlier surge above $90 a barrel as Iran downplayed Israel’s retaliatory attack; bitcoin (BTCUSD) is rising ahead of its much-watched halving event that will curb the token’s supply; Netflix (NFLX) shares are plunging after the streaming company’s first-quarter earnings beat failed to outweigh investor concerns about its revenue outlook; Paramount Global (PARA) shares are soaring on a report that Sony Group’s (SONY) studio division is in talks with Apollo Global Management about a joint bid for the media giant; and Procter & Gamble’s (PG) third-quarter revenue fell short of consensus estimates but adjusted earnings per share (EPS) beat. U.S. stock futures are mixed. Here’s what investors need to know today.
1. Oil Surges, Then Falls, Following Israel’s Retaliatory Strike on Iran
Oil prices whipsawed overnight, with Brent crude moving beyond $90 per barrel before retreating, as Iran reportedly downplayed the damage from a retaliatory strike by Israel that had heightened fears of a broader Middle East conflict. Brent crude futures for June delivery are down 0.5% at $86.67/bbl. Oil prices have soared this year on worsening geopolitical tensions in the Middle East and production cuts by OPEC+.
2. Bitcoin Gains Ahead of Halving, Which Curbs Token’s Supply
Bitcoin (BTCUSD) is rising ahead of its so-called halving—in which the amount of newly issued bitcoin created roughly every 10 minutes is cut in half—an event expected to take place either today or Saturday. In the past, this event, which happens roughly every four years, has been followed by a significant rise in the price of bitcoin, but analysts are divided over whether gains have been priced in with the token hitting recent record highs. Bitcoin hit all-time highs above $73,000 last month, the first time record highs were reached ahead of a halving event. On Friday morning, bitcoin was trading around $65,000, after dropping below $60,000 at one point as worries about geopolitical tensions weighed on the digital asset.
3. Netflix Sinks as Revenue Outlook Disappoints Despite Subscriber Surge
Netflix (NFLX) shares are falling more than 6% in premarket trading, after the streaming company’s surge in subscribers failed to assuage investors disappointed with its revenue outlook. Netflix managed to chalk up an impressive 16% year-over-year jump in subscribers despite cracking down on password sharing, adding 9.33 million new paying customers in the three months through March to end the quarter with 269.6 million customers. The company’s forecast of almost 16% revenue growth at $9.49 billion for the second quarter, however, narrowly lagged estimates. Netflix also estimated revenue will increase 13%-15% for the full year.
4. Paramount Jumps as Sony, Apollo Reportedly May Make a Joint Bid
Paramount Global (PARA) stock is soaring roughly 10% in premarket trading after The New York Times reported that Sony Group’s (SONY) studio division was in talks with Apollo Global Management about joining a bid for the media giant. The two companies have not submitted an official bid, according to the report, which cites “two people familiar with the situation,” as Paramount is still in exclusive merger conversations with Skydance Media. The potential deal with Skydance has generated significant investor pushback, while Paramount had initially rejected Apollo’s initial offer to buy the company for at least $26 billion, including debt, amid questions about the investment firm’s financing.
5. Procter & Gamble Posts Q3 Adjusted Earnings Beat, Sales Slightly Lag
Procter & Gamble (PG) posted sales of $20.2 billion for its 2024 fiscal third quarter ended in March, up 1% year-over-year but below forecasts of $20.45 billion. The maker of Tide and Gillette reported adjusted earnings per share (EPS) jumped 11% to $1.52, above the expectation of $1.41. The consumer products giant affirmed its guidance range for fiscal 2024 “all-in sales growth” to be in the range of 2%-4% versus the prior year, but raised its core EPS growth projection to a range of 10%-11% from a range of 8%-9%. Its shares were down about 1% in premarket trading.
