Heavy Hitters: Netflix Drops More Than 6%, Investors Brace for Apple’s Earnings

Shares of Texas Instruments (NYSE:TXN) jumped 1.8 percent higher in late afternoon hours. The company missed second-quarter revenue estimates, but topped earnings estimates by one penny. Earnings per share came in at 42 cents per share, while revenue totaled $3.05 billion. Rich Templeton, chairman and chief executive officer, explained, “Our business model continues to generate strong cash flow from operations. Free cash flow for the trailing 12 months was almost $3 billion, up 10 percent compared with a year ago. Free cash flow comprised 24 percent of revenue, which is consistent with our target of 20-25 percent.”

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Yahoo! (NASDAQ:YHOO) shares fell 4.3 percent on Monday, but edged slightly higher in late afternoon trading. Dan Loeb is selling two-thirds of his hedge fund’s position in Yahoo! and resigning from its board. Loeb’s Third Point hedge fund is divesting 40 million shares back to Yahoo! at a total price of $1.16 billion, and will for the time being retain 20 million shares, bringing the value of Loeb’s position in Yahoo! to around $1.7 billion. Loeb began buying the shares in August 2011 for around $13. Shares of Google (NASDAQ:GOOG) gained 1.6 percent on Monday.

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Shares of Netflix (NASDAQ:NFLX) sank more than 6 percent in late afternoon hours. The company reported better-than-expected earnings for the second quarter, but revenue was inline and new subscribers missed. Netflix earned 49 cents per share on revenue of $1.07 billion. It added 630,000 new subscribers. Many analysts expected closer to 700,000 new subscribers. Shares of Netflix have nearly tripled this year.

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Apple (NASDAQ:AAPL) shares managed to climb higher on Monday, despite negativity surrounding the company’s upcoming earnings report. Weighing in a day before the earnings, Topeka Capital analyst Brian White lowered his third quarter revenue projection from $36.52 billion to $35.28 billion. This is slightly ahead of the average analyst estimate at $35.09 billion, and at the upper end of Apple’s guidance of a range between $33.5 and $35.5 billion. White lowered his earnings projection from $7.45 to $7.37 per share, also above the average analyst estimate of $7.31 per share.

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