Finance with Pall
Making financial news make sense
Welcome to the Carillon’s “Finance with Pall,” a news finance column covering important economic and financial news from Canada and around the world, focusing on explaining what that news means for students. From tuition costs to job markets, we’ll break down how these changes affect you, making finance easy to understand and relevant to your life. If you have any topic requests or want me to highlight a stock price – shoot me an email at pall@carillonregina.com.
Disclaimer: The information in this column is intended for educational purposes and is not financial advice. For personalized financial guidance, please consult a licensed professional.
News of the week
Netflix streaming crash: A much-anticipated live event took place last week and was streamed exclusively on Netflix. Jake Paul and Mike Tyson got into what dazn called “an intriguing and controversial clash on Netflix.” According to dazn, the event took place in the “U.S. in Dallas, Texas, at the AT&T Stadium, which holds 80,000.”
Longtime boxing fans and casual viewers alike were looking forward to viewing the fight on Netflix, the fight’s exclusive official live streaming platform. It represented a rare step into live sports broadcasting for the entertainment streaming giant. Around 60 million households were streaming it live.
However, with a massive number of users viewing at the same time, there were a lot of technical glitches that took place during the live event, and Netflix is currently being sued for $50 million over this glitch. The disruption caused widespread frustration and dissatisfaction. Customers paid premiums, and yet they were prevented from watching the live event due to the outage.
What effect did this have on the Netflix stock?
After the event, Jeffery Wlodarczak, a financial analyst, shared a prediction with Barron’s that Netflix stock would jump 26 per cent. The stock went down the next morning at opening price, but throughout the day it went through a lot of ups and downs, eventually closing at $847.05 – higher than what it closed at (around $823) on Friday, the day of the live event.
Throughout the week the stock went through various ebbs and flows, reflecting the sentiment of investors in the company. According to Market Watch, “Netflix Inc. hit a new 52-week high, surpassing its previous peak of $890.60, which the company reached on Nov 20.” At one point, it also crossed $900 during its trading in the past week. With that, it outperformed many of its competitors such as Apple and Walt Disney, which fell 0.21 per cent to $228.52 and rose 0.40 per cent to $114.72 respectively.
Terms of the week
All-time high: “All-time high” refers to the highest price or value of an asset, stock or index that it has ever reached in trading history. It indicates strong performance, investor confidence, and market trends. However, it can also caution investors to consider whether the asset might be overvalued or due to be corrected.
Beta: “Beta” is a measure of how risky or volatile an asset is compared to the overall market. A beta above 1 means an asset is more volatile than the market while a beta below 1 means that it is less volatile, and therefore, carries less risk.
Net Income: A “net income” is the profit a company makes after removing or subtracting all kinds of expenses.
Earnings per Share: Earnings per Share, or EPS, is a metric that shows how much profit the company makes for each share. It is calculated by dividing the total profit of a company by the number of shares available.
