Netflix surged 9.3 per cent at the time of writing, after the streaming giant revealed details of its new ad-supported tier.
Since launching its ad-based tier in late 2022, Netflix now has 5 million monthly active users for the cheaper option, which costs just US$6.99 a month due to commercials.
Of Netflix’s new subscribers, 25.0 per cent are opting for this tier.
OpenAI launched a ChatGPT iPhone app in the US on Thursday.
This mobile application follows the success of the software program, which gained over 100 million users upon its launch last year and forced the technology industry to adjust to the advancements of next-generation artificial intelligence.
The app will accept voice input, further progressing its language model. An android version is also coming soon.
Shares of Walmart rose 1.0 per cent at the time of writing, after the big box retailer raised its annual sales and profit targets.
Shoppers took advantage of Walmart’s low-priced groceries and other essential items, driving sales nearly 8.0 per cent higher.
Net income fell to US$1.67 billion, down from US$2.05 billion a year earlier. The company is anticipating consolidated net sales to rise 3.5 per cent in the fiscal year ahead.
New Zealand
At home, the domestic share market dipped yesterday, when Finance Minister Grant Robertson delivered the Government’s much anticipated budget, which uncovered a multi-billion-dollar spending package.
The Treasury no longer predicts a recession, but forecasts see a slower economy ahead.
Cost-of-living spending announcements included the extension of free early childhood education, ending prescription co-payments, and free public transport for children.
The expansionary fiscal stance will generate added inflationary pressures and may prompt the Reserve Bank of New Zealand (RBNZ) to respond.
By the end of Thursday’s trading session, the NZX 50 closed in the green, up 0.2 per cent.
Leading the market movers was payroll service provider, PaySauce (+11.5 per cent), closely followed by Vital (+10.5 per cent).
Serko extended its previous day’s gains, rallying another 7.7 per cent, up 36.8 per cent in just two days since reporting a better-than-anticipated annual report.
Outdoor clothing group KMD Brands gained 1.8 per cent yesterday, after updating shareholders at its investor day, with a 15.6 per cent boost in group sales for the third quarter ending 30 April.
Sales of Kathmandu (+11.3 per cent), Rip Curl (+7.9 per cent) and Oboz footwear (+120.3 per cent), all posted year-on-year growth in the face of consumer spending pressures.
Property investment firm Goodman Property Trust reported results for the year ended March following a $237.7 million reduction in the fair value of its assets.
The 4.7 per cent revaluation drop drove the company to post a net loss of $135.4 million, compared to last year’s profit of $748.6 million.
Despite the value of its portfolio falling, operating earnings rose by 6.9 per cent to $126.5 million, before tax, for the year.
The company provided guidance for FY24, which included a further 4.0 per cent and 5.0 per cent increase in cash earnings and cash distributions respectively. Goodman Property Trust ended the day, up 0.5 per cent.
Yesterday, Statistics NZ published the latest PPI (Producer Price Index) for New Zealand, revealing that both inputs and outputs recorded higher figures compared to the previous quarter.
In the March 2023 quarter, prices received by producers of goods and services (outputs) rose by 0.3 per cent, whilst prices paid by producers (inputs) increased 0.2 per cent over the same period.
Electricity and gas supply industries were the largest contributors of such price movements.
Australia
Technology stocks assumed control in the Australian market, leading a strong session (+2.9 per cent) and driving the ASX 200 up 0.5 per cent on Thursday.
Leading the market was agricultural chemical company Nufarm, which surged 14.2 per cent on the announcement of its 34.0 per cent rise in half-year ebitda to A$64.0 million. The company also lifted its interim dividend.
The Xero share price climbed 8.9 per cent after reporting its FY23 result for the year ended 31 March.
Despite the cloud accounting software provider announcing a wider net loss of A$113.5 million for the year to March, revenue jumped 28.0 per cent to A$1.4 billion on the back of more subscribers (+14.0 per cent) and an increase in average monthly revenue per user (+10.0 per cent).
The company’s profit and restructuring costs were largely impacted by impairments to Planday and Waddle, two acquisitions from recent years.
The sole indication provided for FY24 was that the business is targeting an operating-expense-to-revenue ratio of circa 75.0 per cent.
Among the biggest laggards was Australian gaming company and slot machine maker, Aristocrat Leisure.
Following its fiscal first half earnings, Aristocrat’s shares fell 3.1 per cent on the ASX. Group net profit grew 27.0 per cent hitting A$653 million, but local results indicated a slowdown in poker machine sales.
In macroeconomic terms, Australia employment fell in April after two months of strong gains.
Figures from the Australian Bureau of Statistics showed a fall in net employment by 4,300 from March to April, far from market’s prior consensus. The jobless rate climbed to a three-month high of 3.7 per cent, signalling the tight labour market might be easing.
Coming up today
Japan: National CPI
NZ: Ryman Healthcare FY Earnings, Investore Property FY Earnings, My Food Bag FY Earnings.
For more information on the latest market moves, get in touch with Jarden.
The Jarden Brief is provided for general information purposes only. It reflects views and research available at the time of publication, using external sources, systems and other data and information we believe to be accurate, complete and reliable at the time of preparation. We make no representation or warranty as to the accuracy, correctness and completeness of that information, and will not be liable or responsible for any error or omission. The Jarden Brief is not to be relied upon as a basis for making any investment decision. Please seek specific investment advice before making any investment decision. Jarden Securities Limited is an NZX Firm. A financial advice disclosure statement is available free of charge at https://www.jarden.co.nz/our-services/wealth-management/financial-advice-provider-disclosure-statement/.
Full disclaimer available at: https://www.jarden.co.nz/wealth-sales-and-research-disclaimer
All market pricing and announcements are sourced from Refinitiv, NZX and ASX.
