Netflix Spikes on China Talk, Applied Materials Soars on Earnings Beat

NEW YORK (TheStreet) -- Netflix (NFLX) spikes on talk the online video streaming company is preparing to enter China's market with the help of a Chinese company funded by Alibaba Group's (BABA) founder Jack Ma. Cisco Systems (CSCO) jumps after reporting a strong third quarter. Applied Materials (AMAT) jumps after its revenue beat. 

Netflix surged 4.5% to close at $613.25.

The online streaming video company got a lift after reports surfaced that it was in talks to enter China with the help of companies in that country, including Wasu Media, which is backed by Alibaba's Jack Ma. Netflix is reportedly looking to form a partnership to bring its streaming video service to China's residents.

China is considered a gem because of its estimated $5.9 billion online video market potential, according to a Bloomberg report


Applied Materials jumped 1.7% to end the session at $20.20.

The semiconductor equipment maker got a lift after posting quarterly results of a net profit of 29 cents a share on revenue of $2.44 billion. Analysts were expecting the company to generate earnings of 31 cents a share on revenue of $2.4 billion. Applied Materials was helped by its flat-panel display machine business, which demonstrated strength in the quarter.

Meanwhile, Applied Materials is expecting to earn an adjusted profit of 31 to 35 cents a share in the current quarter on revenue of $2.49 billion to $2.59 billion, according to a Reuters report. Analysts were expecting net profit of 33 cents a share on revenue of $2.52 billion.

Despite the $10 billion failed takover bid of Tokyo Electron, D.A. Davidson & Co. is quoted in the Reuters report as characterizing Applied Materials as performing better than many expected after the deal fell through and that the company's performance demonstrated a "very stable" quarter.


Cisco climbed 1.7% to close at $29.55.

The networking giant rose after posting third quarter results that beat third-quarter earnings and revenue expectations, according to a report in the Market Realist. Part of that performance was helped by overcoming strong challenges with the foreign currency exchange rates, according to the report.

Additionally, Cisco got a lift to its share price after the International Trade Commission largely sided with the networking giant in its patent infringement case against rival Arista Networks  (ANET). Should the ITC ultimately uphold Cisco's claims and ban the Arista products that allegedly have violated Cisco's patents, the California networking giant could further see its market share grow.

 

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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