Netflix' stock is getting ripped apart and has vaporized roughly $8 billion in 2 days

Nathan McAlone 0Aug 22, 2015, 01.47 AM

Ross Catrow/Flickr

Netflix has lost around $8 billion in value in the last two days, as shares crashed for the second time on Friday - down 7.6% in addition to the 7.8% it fell during trading yesterday. The entire stock market has had an ugly two days, with tech and media stocks being hit particularly hard. But Netflix has been getting hammered more thoroughly than most.
On Thursday, media stocks began to fall as Disney and Time Warner were downgraded by analysts from Sanford C. Bernstein, who changed their rating from "outperform" to "market perform." This is the second time recently a faltering at Disney has turned media stocks downward. Earlier this month, trouble at ESPN set off a nosedive for major media stocks.
But at the time Netflix had not fallen with its competitors. Now it seems to be leading them in the stock plunge.
Some previously thought Netflix's stock would not be moved by the woes of cable television, since it contributed to those woes by encouraging cord cutting. But now Netflix is crashing even harder than many traditional media companies.
Disney ended the day down 1% in addition to the 6% it fell yesterday, while Time Warner added 1.6% to its previous 5% loss.

Money Lessons I Should Have Known When I Was 22

I started working when I was 22. Today I oversee product development at Scripbox and have the opportunity to see on a daily basis, how mutual funds are helping people build wealth.
As I turn 30, I realize I could have done so much more with my money if only I knew the things I know today. Here are the top four things I wish I knew back in my early twenties.
#1. I wish I knew the importance of savings – no matter how small they were
It seemed like a boring word back then; savings. Today I know different. Every time I spend 1000 rupees on a restaurant meal, I lost out on a chance to make it Rs 3700 over 10 years (assuming 14% annual returns that equity funds can offer).
Imagine if I had started investing Rs.1000 per month for 8 years in Equity funds, I would have had a corpus of  Rs 1.8 lakh today which would still be growing every year and would be TAX-FREE.
#2. I wish I knew how to save taxes the right way
I realized too late that my “Tax Saving” investment in an insurance policy wasn’t yielding any benefit. I actually didn’t even need to start putting money into anything that “saves tax” till I was 25 because my rent receipts would get me the tax break I needed.
Now I’m stuck with this insurance policy for another 12 years till it matures and I will continue to pay Rs. 60,000 per annum for it. I wish someone had told me about ELSS.
#3. I wish I had invested time in learning about finance including investing in Equity
Having turned 30, I now realize that saving money and making it grow is a lot about knowledge and turning to the right people for advice. I’ve been investing regularly in equity for the last 2 years and I realize that there isn’t a better way to grow your savings in a way that doesn’t burden you.
I can put a small amount away into equity funds every month and as the investment completes a year, the investment grows whilst becoming tax free.
#4. You don’t have to listen to everyone
I wish I realized that the traditional investment instruments advised by most of my elders were more about saving money and less about growing it. Insurance policies or Fixed Deposits may help you save money but rarely give you the inflation beating returns that equities do.
If you are looking to fund that big Europe holiday when you are 35, equities will beat the traditional money instruments hands down.

Inflation: A positive surprise for the market

Inflation: A positive surprise for the market Last week the headline CPI inflation for July-15 came in sharply lower at 3.78% over the previous year as compared to 5.4% in June-15. The July CPI data was significantly lower than consensus expectations of 4.4% and the decline was not entirely due to base effect. The positive surprise came in predominantly from lower food inflation. Food inflation came in at 2.2% in July-15 as against 5.5% in June-15. Core CPI inflation - excluding food and fuel- also moderated to 4% in July-15 from 4.6% in June-15. Thus the deceleration in CPI was broad based across categories. More importantly, the momentum of core inflation slowed down in July to 0.2% month-on-month (M-o-M) (seasonally adjusted) increase from 0.5% m-o-m rise seen over the last few months. In the recent past we have been highlighting (as detailed in table below) that inflation in India is likely to moderate as all the structural drivers such as low MSP hikes and low rural wage growth, relatively stable exchange rate, crude oil and commodity price fall, have turned favourable. The latest CPI data reinforces our view that inflation trajectory going forward will be lower and undershoot RBI’s target for Jan-Mar16. This may provide room to RBI for another rate cut in the next credit policy review due on 29th September 15.

Conclusion In our opinion all the key determinants of interest rates in India viz inflation and inflation drivers, fiscal deficit, CAD, economic activity point towards lower rates. In light of the positive surprise on CPI data and the higher possibility of an expected rate cut by RBI Source : HDMC MF