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To NAB or not?

This week, we look at NAB (Netflix, Apple and Bitcoin) and whether investors should nab these three giants.

➤ Netflix (NFLX)

➤ Apple (AAPL)

➤ Bitcoin (BTC)

Netflix (NFLX) and too chilled? 

Last week saw popular movie streaming service Netflix’s share price fall 11% in after-hours trading after the release of its Q1 earnings report. While the streaming service beat expectations with revenue of $7.16bn, it only amassed 4-million new subscribers between January and March instead of the 6.3 million it predicted.

To add fuel to the subscriber growth fire, Netflix expects one million new subscribers in the next financial quarter as opposed to the five million predicted by analysts. Netflix has blamed the lack of new shows for its disappointing subscriber numbers with the pandemic slowing production and filming. 

With a number of competitors, including Amazon Prime and Disney+, in the streaming space, will Netflix’s promise of better movies and tv shows materialise this year? The service has allocated a $17bn budget for new content in 2021, an increase on the previous year from $11.8bn. As vaccines continue to be rolled out and lockdowns ease, will people turn off the not-so-big screen and head outside instead?

The big Apple (AAPL)

The month of April saw the tech giant’s Spring Loaded event which featured the iPad Pro and iMac equipped with a new M1 chip and redesigned architecture. A purple iPhone 12 was also on the roster as Apple recognised the desire for a pretty entry-level smartphone as well as the introduction of AirTags and an updated Apple TV 4k. Could a product revamp boost Apple’s fluctuating share price?

Apple’s subscription businesses have been growing in recent years and now include Apple TV+, Apple Arcade, Apple Care and Apple Music. These subscription-revenue businesses have got tongues wagging in the wake of Netflix’s disappointing subscriber numbers.

Following the news of Biden’s tax hike, Apple has announced plans to make new contributions of more than $430 billion and add 20,000 new jobs across the country over the next five years with aims to support American innovation and drive economic benefits in every state. This includes billions of dollars for next-generation silicon development and 5G innovation across nine US states.

With Wall Street analysts forecasting sales of $77 billion ahead of Q2 earnings, will the tech behemoth continue to grow from strength to strength as it continues to dominate the computer and wearable industry?

Bitcoin (BTC): what does the future hodl?

Despite starting the week bullish, the end of the week saw bitcoin drop below $50,000 per coin for the first time since early March, taking with it ethereum, XRP and cardano. 

The minor correction was sparked by President Biden’s plans to hike capital gains taxes for individuals earning over $1million dollars per year, which could negatively impact investment in cryptocurrency. Could bitcoin be heading for a major correction?

Rumours of a major correction followed bitcoin peaking at nearly $65,000 per coin on April 13, reinforcing crypto as a volatile investment. But with the likes of Elon Musk tweeting cryptic messages, governments’ changing attitudes, increased interest from institutional investors and the Chancellor announcing potential digital currency Britcoin, could this all signal a run for the original crypto?

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