The enormous spending on AI-related hardware will only increase in the coming years. Some pundits peg that spending will top $5 trillion. Investors who missed out on the 2022-2026 rise are experiencing FOMO.
The fear of missing out potentially led to investors selling three stocks, to some extent.
Nike (NKE) traded down by around 9% in after-hours trading. The firm is forecasting sales in FY 2027 to fall in the high single-digit percentage. In the first quarter, the firm earned $0.48 on revenue of $11.21 billion (-4.2% Y/Y). CEO Elliot Hill blamed Sportswear, Jordan Brand, and Greater China for the shortfall in sales. It will take “deliberate actions” to strengthen them over the long term.
After Paramount Skydance (PSKY) continued its buyout of Warner Bros. Discovery (WBD), the former raised $41 billion in debt. The debt matures through 2066, with interest rates ranging from 6.30% to 9.125%. The size of the merged firm is a headwind for Netflix (NFLX).
NFLX stock closed below $70 (at $67.85). Co-CEO Ted Sarandos said that 5% of its annual content investment of $20 billion makes only 1% of viewership. Still, this helps cut subscriber churn.
Netflix also competes with a bigger giant, YouTube (GOOG).
McDonald’s (MCD) edged higher but is still down by 22% YTD. The stock has yet to recover from eight straight weeks of decline.
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