3 Super Hot Stocks: Netflix Crashes 13%, UBS Blame Shifts, and Allstate Estimates Catastrophe Losses
Netflix Inc. (NASDAQ:NFLX) lowered its third-quarter domestic subscriber estimates. The company expects to end the quarter with 21.8 million domestic streaming subscribers and 14.2 million U.S. DVD subscribers, down from its prior forecast of 22 million and 15 million, respectively. This month, the company ended its $9.99 per-month DVD-rental and movie-streaming plan and split the services to two separate plans for $7.99 a month each. Netflix’s stock has had a rocky road recently after Starz (NASDAQ:LSTZA) and other content providers are looking for a higher cut from the distributor.
UBS AG (NYSE:UBS) has a great excuse for announcing bad earnings this quarter: the Swiss bank claims a rogue trader in its investment-banking division has accumulated $2 billion of losses. Considering traders report to a trading desk daily, it’s mind boggling how one person can do so much damage.
Allstate Corp. (NYSE:ALL) now expects $735 million pre-tax catastrophe losses for the month of August. There were eight catastrophic events affecting Allstate in August, including Hurricane Irene. The insurer estimates Hurricane Irene will total $500 million pre-tax losses. The news will affect all the casualty and property insurers today: ACE Ltd. (NYSE:ACE), XL Group (NYSE:XL), PartnerRe (NYSE:PRE) Everest Re (NYSE:RE), Travelers Cos. (NYSE:TRV), Chubb Corp. (NYSE:CB), American Financial Group (NYSE:AFG), American International Group (NYSE:AIG).