Heavy Hitters: Netflix Surges 10%, Apple Logs 9-Day Winning Streak

Shares of Discover Financial Services (NYSE:DFS) dropped 4 percent in late afternoon trading. Discover reported net income of $593 million ($1.20 cents per share) for the third quarter, down from $637 million ($1.24 per share) a year earlier. On the positive, total loans increased $3.1 billion from the prior year. “Discover’s card loan growth continues to exceed industry growth while charge-offs achieved new record lows,” said David Nelms, chairman and chief executive officer of Discover. “During the quarter we launched Discover Home Equity Loans as we continue to expand our direct banking product suite to more broadly serve consumer needs.”

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Netflix (NASDAQ:NFLX) shares surged more than 10 percent in late afternoon hours. Netflix reported quarterly earnings of 52 cents per share, above expectations for 49 cents per share. Revenue also increased to $1.11 billion from $905 million a year earlier. “We are very pleased to have over 40 million members, up from less than 30 million just one year ago,” explained Netflix. “The Netflix original series Orange is the New Black is a critical and popular success, and our earlier series House of Cards is the first Internet TV series to win a Primetime Emmy Award. We launched our 41st country and the Dutch seem to like Netflix.” Shares of Netflix are now trading at an all-time high.

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Shares of Apple (NASDAQ:AAPL) jumped 2.5 percent on Monday and continued to edge higher in late afternoon hours. Apple has closed higher for nine consecutive trading days, its best streak in about three years. Societe Generale analyst Andy Perkins has slapped a price target of $575, up from $500, on Apple with a rating of Buy, up from Hold. ”We suspect that lower competition may enable Apple to take more market share and help it to rebuild margins,” Perkins said. A month ago, Perkins took his Buy rating down after Apple reported a spectacular iPhone 5S/5C release weekend but didn’t make any adjustments to its guidance.

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Texas Instruments (NYSE:TXN) shares fell 3.2 percent in late afternoon trading. Texas Instruments reported quarterly earnings of 53 cents per share on revenue of $3.24 billion, topping estimates for 53 cents per share on revenue of $3.23 billion. However, the company’s guidance disappointed Wall Street. “At the mid-point of our fourth-quarter guidance range, revenue would decline 8 percent sequentially and be about even with the fourth quarter of 2012,” said Rich Templeton, president and chief executive officer of Texas Instruments. “Excluding legacy wireless revenue, which should decline to about $50 million in the fourth quarter, the mid-point of our outlook would deliver 8 percent growth from a year ago.”

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