Over the past week, the stock market continued its retracement, influenced by diminishing expectations of an imminent interest rate cut and escalating geopolitical uncertainty. Amid the circumstances, investors have turned to safe-haven assets such as gold.
It is noteworthy that for several weeks, besides geopolitical tensions, stocks have encountered pressure due to persistent uncertainty surrounding Federal Reserve interest rate adjustments.
However, certain stocks maintain their appeal amidst these conditions due to their potential to influence overall market momentum. In this context, Finbold has pinpointed two equities worth monitoring in the upcoming week.
Picks for you
Netflix
Following its robust first-quarter financial results, streaming giant Netflix (NASDAQ: NFLX) grabs investors’ attention for the upcoming week. In its first-quarter earnings report, Netflix surpassed expectations, reporting a significant increase in revenue and earnings.
The company’s subscriber base expanded by 9.3 million, reaching nearly 270 million, while profits surged to over $2.3 billion, partly due to a crackdown on password sharing.
However, the stock closed the last trading session with losses of almost 9%; over the past week, it has seen a decline of nearly 12%. After-hours trading dropped nearly 4%, reflecting investor concerns over revenue guidance falling short of Wall Street estimates.
Netflix’s decision to phase out reporting subscriber data also sparked confusion among investors. The company attributed lower second-quarter subscriber forecasts to “seasonality” and a weaker revenue forecast, contributing to a further decline in Netflix stock.
As Netflix navigates market fluctuations and adjusts reporting practices, investors will closely monitor its performance next week, weighing impressive earnings against uncertainties surrounding subscriber growth and revenue projections.
By the close of markets on April 19, NFLX was trading at $555.04, but it remains in the green zone for 2024, having gained over 18% on a year-to-date basis.
Nvidia
Amidst a correction in the tech industry, chipmaker Nvidia’s (NASDAQ: NVDA) stock takes center stage for investors next week. Despite recent declines in its stock price, Nvidia maintains its position as a market leader, supported by robust fundamentals and a vision for an artificial intelligence (AI)-driven future.
In the past month, Nvidia’s stock has shown signs of plateauing, with a 15% correction observed in the last week alone, reflecting broader market sentiments. However, analysts underscore Nvidia’s core strengths, including a loyal customer base in gaming and data center sectors and ongoing innovation in artificial intelligence, positioning it for long-term success.
Despite a cooling off in AI enthusiasm and market factors such as rising inflation, volatility, and AI stock fatigue, anticipation remains high for Nvidia’s next move. The stock’s performance next week will likely influence the entire technology sector.
Some experts argue that Nvidia’s recent sell-off should be seen as a short-term challenge to broader markets, deserving more attention in the coming days.
By press time, Nvidia was valued at $762, reflecting monthly losses of almost 20%.
The overall health of the stock market can also influence the two companies’ share prices. The two companies will likely benefit if the broader market experiences a positive upward swing.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
