Stock Market Today (LIVE): Is Netflix (-10% Today) Finally Cheap?; Stocks Buoyed by Open Strait

📌 Top story — scroll down for more updates

Don’t Blame Reed: Netflix’s Real Problem Is Growth

4:24 pm — NFLX -9.72% today

Netflix (NFLX 9.71%) stock is taking a beating—down over 9% today when the S&P 500 is hitting record highs. If any of that decline is due to Reed Hastings stepping down as chair, then that is silly. Hastings hasn’t been involved in the day-to-day operations for a long time, and he has groomed an excellent management team. Also, he will still be a large shareholder of Netflix with approximately a third of his net worth in the stock. However, his departure is sentimental as I have been a huge fan of his. What did to build Netflix is nothing short of extraordinary. He will remain one of the best CEOs ever in my estimation.

The fears of saturation and slowdown in the U.S. are very real and validate a valuation reset in the stock. It’s not the explosive growth company of yesteryear. However, Netflix has become a cash flowing machine. While it still must invest heavily in content to keep up in the industry, their service has become a staple in consumers’ streaming lineup.

Netflix stock has never looked cheap but at a TTM P/E of 35x and forward P/E of 30x, the stock looks like more of a bargain given it can still generate EPS growth of 20-25% going forward. I’d be a buyer of the stock on weakness.

Closing Bell

4:02 pm

U.S. stocks surged Friday after Iran declared the Strait of Hormuz open, citing the Israel-Lebanon ceasefire. The S&P 500 crossed 7,100 for the first time, the Dow Jones Industrial Average climbed 851 points (1.8%), and the Nasdaq Composite gained 1.5%. Oil tumbled. West Texas Intermediate futures fell nearly 12% to $83.85/barrel as supply disruption fears eased.

• Caveats remain: Iran’s Tasnim news agency reported that ships linked to “hostile nations” may be blocked, and the strait could close again if the U.S. navy blockade persists. Whether ships will face tolls is also unresolved.
• Tech leads the week: The Roundhill Magnificent Seven ETF (MAGS +1.75%) is on pace for its third straight winning week, up over 8%. Tesla (TSLA +2.96%) surged 15% for the week; Microsoft (MSFT +0.60%) soared nearly 14%, its biggest weekly gain since 2007.

Truist Just Had Its Best Quarter in Years

3:44 pm — TFC +2.52%

Before the bell, Truist (TFC +2.54%) reported Q1 net income of $1.4 billion, or $1.09 per diluted share, up 25% year over year. Total revenue came in at $5.15 billion. The bank repurchased $1.1 billion in common shares and declared a $0.52 dividend. Shares have reversed pre-market trading losses. The stock is beating the S&P 500 by 7% since its February 2024 Hidden Gems rec. Fool contributing analyst Matt Frankel said last month that “as far as regional banks go, it’s probably my Number 1 or 2.”

• The number that should stop you scrolling: Truist set a long-term ROTCE target of 16%–18%. For bank investors, ROTCE (Return on Average Tangible Common Equity) is one of the most watched profitability benchmarks. Truist’s current 13.8% is solid, and their 16% to 18% long-term target would put them in the upper tier of large regional banks if they get there.
• Where the growth is coming from: Commercial loans led the way, rising 1.8% quarter over quarter, while investment banking and trading income surged 36% versus a year ago.

Anthropic Walks Away From Figma

3:12pm — FIG -8.07%

Anthropic today announced that it will compete with Figma (FIG 6.69%) via an AI-powered product called Claude Design. The stock is down about 7.5% as of this writing. The increased competition could be bad, or it could be just the validation Figma needs to convince designers and developers that design-driven development is the future and Figma is the tool for it. Big-money investors don’t believe the latter right now and that’s understandable. What to do? Talk with designers and developers to understand their willingness to leave Figma. Scuttlebutt is our best friend right now, Fools.

WBD Merger Faces European Test

2:49 pm — WBD +0.35%, PSKY -0.30%, NFLX -9.99%

Warner Bros. Discovery (WBD +0.29%) shareholders will vote next week (April 23) on the Paramount Skydance (PSKY +0.09%) merger — with board approval unanimous and the outcome widely expected. Netflix (NFLX 9.71%) had been the competing bidder but declined to raise its offer, calling the deal “a nice to have at the right price, not a must have at any price.” A $2.8 billion termination fee — booked as “interest and other income” in yesterday’s earnings — is a one-time windfall that Motley Fool Chief Investment Officer Andy Cross called “pure shareholder cash.”

• The real gauntlet: UK and European regulators could take 12 to 18 months to review the deal and history says mega-mergers pass with forced divestitures, not outright blocks.
• Netflix redirects: Rather than overpay, Netflix returns to buybacks and a $20 billion content slate. “I think it is good that NFLX walked away,” member JonWest888 wrote. Media companies are not good investments. I have owned PSKY and WBD for some time.”

Fear Is Fading. Buy Now?

2:27 pm

The S&P 500 (^GSPC +1.20%) has climbed 7% since April began, erasing most of a rough first quarter. The VIX (^VIX 2.56%) — Wall Street’s “fear gauge” — has dropped 41% from its March peak, signaling calmer conditions heading into earnings season.

• The contrarian case: The best buying window may have already passed. The S&P 500’s low hit March 30, when fear was peaking, consistent with Buffett’s famous advice to buy when others are fearful. For long-term investors, dollar-cost averaging remains more reliable than timing entries around volatility signals. 
• A Fool weighs in: Ticker Guide TMFPuraVida wrote on March 27 that the month’s events have had no impact on the thesis for any of their investments. “Geopolitical events, especially when they directly impact oil supply, will naturally have secondary effects. If anything I get an opportunity to see which of my businesses are more resilient to challenging conditions and are impacted by economic cycles.”

ASML Alumni Take Aim at Chip Giants

1:25 pm

European semiconductor startups are mounting a challenge to Nvidia (NVDA +1.67%) as the artificial intelligence boom shifts toward “inference” efficiency. Dutch startup Euclyd, backed by former ASML (ASML +3.42%) CEO Peter Wennink, is seeking at least $118 million to scale chips it claims offer 100x the power efficiency of Nvidia’s latest hardware. While Nvidia dominates training, Euclyd and peers like Fractile argue current GPU architectures struggle with the energy demands of running models at scale. This “sovereign compute” push arrives as geopolitical friction and concentration risks at TSMC (TSM +1.97%) drive capital toward homegrown European alternatives.

• Architectural Ambush: Unlike standard GPUs that waste energy moving data across memory stacks, Euclyd’s design processes data in multiple locations simultaneously. This structural pivot aims to slash the cost and physical footprint of data centers currently straining under traditional silicon.
• Geopolitical Tailwinds: Investors are increasingly wary of U.S. export controls and the intense reliance on a single Taiwanese supplier. This creates a strategic opening for venture-backed firms to provide the continent with a self-sufficient, low-power AI infrastructure.

Today’s Lunchtime News

1:15 pm

Big Tech stocks are set to cap a historic week, with Oracle (ORCL 1.86%), Advanced Micro Devices (AMD 0.03%), and Microsoft (MSFT +0.60%) posting some of their best gains in years amid renewed enthusiasm for AI infrastructure spending.

• Record runs: Oracle is up 32% this week, its best stretch since October 1999, after expanding a 1.2-gigawatt AI data center power deal with Bloom Energy (BE 1.05%). AMD hit an all-time high Thursday during its longest win streak in more than 20 years. Microsoft is on pace for its best week since April 2015 after losing nearly a quarter of its value last quarter.
• Broad rally: The iShares Expanded Tech-Software ETF (IGV +0.85%) is pacing for its best week since October 2001. Intel (INTC 0.07%) is up 55% in April on partnerships with Alphabet (GOOG +1.99%) and Elon Musk’s companies, while Broadcom (AVGO +2.02%), Micron (MU 0.47%), Marvell (MRVL +4.63%), and ON Semiconductor (ON +3.84%) have each gained roughly 30% this month.

Today’s Change

(-0.03%) $-0.09

Current Price

$278.17

Key Data Points

Market Cap

$454B

Day’s Range

$274.15 – $280.05

52wk Range

$83.75 – $281.05

Volume

1.4M

Avg Vol

38M

Gross Margin

45.99%

Lilly CEO Warns of Market Ceiling

12:15 pm — LLY +2.4%

Eli Lilly (LLY +2.57%) CEO David Ricks cautioned Friday that GLP-1 weight-loss drugs will likely reach only half of eligible patients at peak, citing healthcare system friction and financial barriers. Comparing the trajectory to statins, Ricks noted that treating 500 million people — a 20-fold increase from current levels — requires “expensive and slow” capital expenditure. Despite these constraints, Lilly is aggressively expanding into oral treatments with Foundayo, which logged 1,390 prescriptions in its debut week. This needle-free pill competes directly with the oral Wegovy from Novo Nordisk (NVO 1.00%) as both giants race to dominate a market projected to exceed $100 billion annually.

• Manufacturing Bottlenecks: Ricks signaled that further efficiency gains in current plants are exhausted, meaning volume growth now depends entirely on building new physical capacity. This massive capex rollout suggests a multi-year lag before supply can truly meet global demand.
• The Affordability Barrier: While specialists view pills as a low-cost alternative, current monthly prices up to $349 remain prohibitive for many. Lilly is pivoting its strategy to bridge the gap between “people with means” and the broader uninsured population to unlock long-term growth.

Kroger Uses Tech to Slash Food Shrink

12:10 pm

Traditional grocers are deploying artificial intelligence to combat an $18.2 billion food waste problem and protect margins against discounters like Dollar General (DG +2.60%). Kroger (KR +0.56%) is expanding its use of the Flashfood AI platform to 2,000+ locations, using real-time data to discount perishables before they expire. This surgical pricing strategy allows retailers to recapture “shrink”—industry speak for lost inventory—while avoiding the brand-eroding effects of blanket promotions. As shoppers visit 23% more stores to find deals, tech-driven efficiency is becoming the primary differentiator for incumbent chains fighting for market share against Costco (COST +1.28%).

• The Ecosystem Upsell: Flashfood users visit stores four extra times per month and spend roughly $28 more on full-priced items per trip. This digital “carrot” effectively subsidizes customer acquisition while clearing slow-moving inventory.
• Data-Driven Fortification: By analyzing exactly when and at what price fresh goods move, Kroger gains a predictive edge in high-risk categories like bakery and meat. Analysts suggest this superior data utilization justifies a premium valuation over less-tech-savvy regional competitors.

Today’s Change

(0.56%) $0.38

Current Price

$68.15

Key Data Points

Market Cap

$42B

Day’s Range

$65.66 – $68.20

52wk Range

$58.60 – $76.58

Volume

213K

Avg Vol

6.6M

Gross Margin

21.04%

Dividend Yield

2.02%

Uber Targets E-Commerce Returns

11:15 am — UBER +2.1%

Uber Technologies (UBER +0.77%) is expanding its logistics footprint by launching a retail return service via Uber Eats. For a fee, couriers will collect eligible items purchased through the app and return them to partners like Best Buy (BBY +1.64%), Dick’s Sporting Goods (DKS +2.98%), and Petco (WOOF 0.16%). Crucially, the service offers instant refunds upon pickup—addressing a primary pain point for 43% of shoppers. As delivery revenue surged 30% in late 2025 to $4.9 billion, Uber is aggressively positioning itself to compete with the return networks of Amazon.com (AMZN +0.26%) and traditional carriers like FedEx (FDX +2.87%).

• Unboxing the Friction: Unlike previous iterations requiring sealed boxes, this feature allows unpackaged items to go straight to the store. It targets the “return stress” of printing labels and finding boxes that currently plagues one-third of online shoppers.
• Margin Optimization: By utilizing existing couriers for two-way trips, Uber maximizes driver utility and generates incremental fee revenue. This move deepens the platform’s integration with major brick-and-mortar retailers seeking to simplify their post-purchase ecosystems.

DeepSeek Eyes $10 Billion Raise

11:20 am

DeepSeek, the Chinese startup that triggered a global AI sell-off last year with its high-efficiency, low-cost models, is reportedly seeking at least $300 million at a $10 billion valuation. According to The Information, the firm is navigating intense capital demands for “agentic” bot development while operating under heavy U.S. investment restrictions. Despite a ban on high-end exports, DeepSeek reportedly trained its flagship model on advanced processors from Nvidia (NVDA +1.67%), heightening tensions over technology leakage. While domestic rivals like Baidu (BIDU +0.87%) face pressure to use local silicon, DeepSeek’s ability to optimize performance on restricted hardware remains a major wildcard for the global AI landscape.

• Bypassing the Silicon Wall: The startup famously avoided showing U.S. chipmakers its models for optimization, yet still managed to deliver industry-shaking performance. This suggests an engineering efficiency that could undermine the high-cost moats currently protecting Western hyperscalers.
• Capital vs. Geopolitics: While DeepSeek has previously snubbed major Chinese tech conglomerates, this current $300 million push tests investor appetite for a company caught in the crosshairs of U.S. sanctions and Beijing’s self-reliance mandates.

Google’s Nano Banana Is Back

10:10 am — GOOG +0.7%

Alphabet (GOOG +1.99%) is deepening its artificial intelligence moat by integrating the Gemini chatbot with Nano Banana and private Google Photos. This “Personal Intelligence” update allows paid subscribers to generate custom images of themselves or their families using existing library data rather than manual uploads. The move leverages Google’s massive data ecosystem to drive user retention, a strategy that previously pushed Gemini to the top of the Apple (AAPL +2.65%) App Store. While Google clarifies that models do not “train” directly on these private libraries, the deeper link to user data represents an aggressive push to outpace OpenAI by offering a level of personalization rivals currently lack.

• Infrastructure Pressure: The initial popularity of Nano Banana previously overloaded Google’s custom Tensor Processing Units. Success for this rollout hinges on whether recent hardware scaling can handle the surge in complex, personalized rendering requests.
• Subscription Stickiness: By locking these features behind a paywall, Google is testing the “willingness to pay” for AI that understands a user’s specific social circle. This creates a high-margin revenue stream that competitors without native photo storage cannot easily replicate.

Opening Bell

9:30 am

Wall Street is cheering the reopening of the Strait of Hormuz, with the Dow surging over 500 points in early Friday trade. The breakthrough followed Iran’s declaration that the vital commercial shipping lane is “completely open” after a 10-day ceasefire between Israel and Lebanon. This geopolitical de-escalation has pushed the S&P 500 and Nasdaq to fresh gains, as the tech-heavy index tracks toward a 5.2% weekly win. President Trump’s optimistic signaling that the conflict is “ending pretty soon” is effectively removing the final layers of war-related risk premium from global equities.

Anthropic Heads to the White House

9:40 am

Anthropic CEO Dario Amodei is scheduled to meet White House Chief of Staff Susie Wiles today, signaling a potential resolution to a heated standoff with the Pentagon. The friction centers on Mythos, a new AI model with advanced cybersecurity capabilities that the Trump administration now views as vital for national defense. While the Department of Defense previously severed ties with the AI lab over contract disputes, federal agencies including the Treasury and State Departments are reportedly seeking urgent briefings on the technology. This high-stakes diplomatic pivot highlights the government’s fear that restricting home-grown AI like Mythos would hand a decisive technological advantage to China.

• Project Glasswing Clearance: The government plans to deploy specialized versions of the unreleased Claude Mythos Preview model across major federal agencies for defensive operations. This move effectively overrides previous procurement hurdles to secure elite cyber tools.
• National Security Imperative: Proponents argue that blacklisting Anthropic is “grossly irresponsible” given the model’s ability to breach sophisticated defenses. The White House is now fast-tracking access to ensure domestic infrastructure remains resilient against state-sponsored digital threats.

iPhone China Shipments Surge 20%

7:25 am — AAPL +0.44% in pre-market trading

Apple (AAPL +2.65%) managed to grow iPhone shipments in China by 20% in Q1, the strongest growth in the key market among major peers, despite having to contend with supply chain disruptions and high memory costs.

• Apple’s 19% China market share is only marginally behind the top spot: Apple is currently only 1% behind Huawei in terms of market share in the country. Overall smartphone shipments fell by 4% in China for the quarter, indicating a difficult backdrop for Q2.
• Longtime Apple marketing chief set to retire: Elsewhere, Stan Ng – the marketing executive in charge of the Apple Watch, AirPods and home initiatives – is departing after 31 years at the business, marking another major figure stepping away.

This Morning’s Breakfast News

7:30 am — NFLX -9.99% in pre-market trading

Netflix (NFLX 9.71%) fell close to 10% in pre-market trading after results contained underwhelming guidance for the coming quarter, along with news that chairman and co-founder Reed Hastings would be stepping down.

• “Warner Bros. would have been a nice accelerant for our strategy, but only at the right price”: CEO Ted Sarandos said the departure of Hastings was unrelated to the failed pursuit of Warner Bros Discovery (WBD +0.29%), instead saying “he was a big champion of that deal.” Netflix banked a one-time $2.8 billion windfall from the breakup fee.
• Softer Q2 revenue and earnings projected: There was some disappointment the focus on increasing ad revenue and monetizing its user base isn’t going to deliver as strong results as previously anticipated, although the full-year revenue goal was maintained, indicating a 12%-14% growth rate.

ICYMI: Thursday’s Scoreboard

6:00 am — CASY unchanged in pre-market trading

Casey’s General Stores (CASY +2.40%) was the subject of the latest Scoreboard video.

Kering Taps Google to Launch Gucci Smart Glasses

5:15 am — GOOG +0.30%, META +0.20% in pre-market trading

French luxury giant Kering (PPRUY +3.39%) is preparing a high-tech makeover for its flagship brand, with CEO Luca de Meo announcing a partnership with Alphabet (GOOG +1.99%) to launch Gucci-branded smart glasses. Slated for a 2027 release, the wearables will likely utilize Google’s Android XR platform, positioning the duo to challenge the current market dominance held by the Meta (META +1.81%)-Ray-Ban collaboration. The move is a cornerstone of de Meo’s “ReconKering” strategy, which aims to revitalize the conglomerate by merging traditional Italian craftsmanship with cutting-edge AI and augmented reality.

• Targeting the Meta Throne: With Meta currently controlling over 80% of the AI eyewear market, Kering’s entry signals a shift toward the “premiumization” of wearables to drive higher margins.
• Diversification Drive: The project is part of a broader push to scale Gucci’s non-core categories as Kering seeks to rebound from a period of cooling luxury demand in key global markets.

Today’s Change

(1.99%) $6.63

Current Price

$339.40

Key Data Points

Market Cap

$4.0T

Day’s Range

$333.29 – $339.99

52wk Range

$148.40 – $350.15

Volume

20M

Avg Vol

21M

Gross Margin

59.68%

Dividend Yield

0.25%

Top of the Morning

5:00 am

How much do you think about risk?

What I actually mean is, how much do you think about what could go wrong with your investments?

The biggest mistakes I’ve made investing have happened when I lose sight of the downside.

“I know I’m right.”

“I’m going to make a ton of money!”

“This company is going down.”

Absolutes like that should come with flashing red lights and an audio voice over saying, “Danger, Will Robinson!” Because the moment you start thinking like that is the moment where you open yourself up to big losses.

4:15 am

“A new research companion”

OpenAI has announced the release of GPT‑Rosalind. This model is named after the chemist, Rosalind Franklin, whose work was vital to the discovery of DNA.

The world of life sciences can be difficult, with the road from discovery to market potentially taking a decade or more…if it happens at all. According to the Chicago Booth Review, “… the average cost of creating a new drug is $1.4 billion, and more than 90 percent of drugs that enter clinical trials never make it to market.” That sounds frustratingly high. But some of that is the nature of science.

While AI can’t currently improve the success rate of clinical trials (some of that is just the nature of science), OpenAI believes it can help the life sciences industry in other ways. The company said of its new model: “By supporting evidence synthesis, hypothesis generation, experimental planning, and other multi-step research tasks, this model is designed to help researchers accelerate the early stages of discovery.”

Creating a model that can help the life sciences industry — which is largely recession resilient — isn’t a bad business idea. And also not a bad idea for a company that’s rumored to be preparing to go public (potentially by the end of the year).

Stress-testing a potential investing idea is all about asking the next great question. A few easy questions come to mind with this new model-what will customers pay for this? What will the competition be like, (can Anthropic develop something similar)? And, how much of that will be known when OpenAI does go public?

Uber Tightens Europe Grip With Delivery Hero Bet

4:45 am — UBER unchanged in pre-market trading

Uber (UBER +0.77%) is tightening its grip on the European food delivery market, agreeing to purchase an additional 4.5% stake in German rival Delivery Hero for approximately €270 million. The “opportunistic” deal with Dutch investment group Prosus (PROSY +3.28%) brings Uber’s total ownership to 7% following a previous $300 million investment in 2024. Prosus is offloading the shares to satisfy EU regulators after its €4.1 billion takeover of Just Eat Takeaway (JTKWY +0.00%) last year. This move highlights a broader trend of North American consolidation in the region, coming shortly after DoorDash (DASH +2.54%) completed its £2.9 billion acquisition of Deliveroo.

• Under-the-Radar Discount: Uber secured the shares at €20 each–a slight discount to the previous day’s close–leveraging regulatory pressure on Prosus to reduce its stake to single digits by August 2026.
• Activist Heat Rising: The investment comes as Delivery Hero faces pressure from hedge fund Aspex Management to oust its CEO and divest assets after an 80% share price collapse over five years.

Before the Opening Bell

4:00 am

Stock futures inched higher Thursday evening following President Donald Trump’s announcement of a 10-day ceasefire between Israel and Lebanon. The news has effectively neutralized the “war discount” on equities, with the S&P 500 recently breaching the 7,000 level to erase losses from the spring conflict with Iran. Speaking from the White House, the president expressed optimism that a permanent resolution is within reach following upcoming weekend negotiations. While energy prices have retreated from their $100-per-barrel peak as fears of a prolonged Strait of Hormuz closure fade, investors are rotating back into growth sectors. Financial giants like Bank of America (BAC +0.75%) and Morgan Stanley (MS +0.85%) have also bolstered sentiment with resilient quarterly earnings amid the regional volatility.

• The Energy Pivot: As geopolitical tensions cool, ExxonMobil (XOM 3.61%) and other oil majors have seen recent gains slip, with Brent crude dropping 10% toward the $95 mark.
• Safe-Haven Exodus: The VIX “fear index” hit a seven-week low below 18, signaling a massive shift in capital from gold and defensive assets back into the tech-heavy Nasdaq.