Tech roared to impressive gains Wednesday, led by Netflix on news the streaming giant is set to expand its reach into Europe.
Netflix (NASDAQ:NFLX) revealed plans to increase the number of shows it produces in Europe in languages other than English in a bid to add further steel to its international subscriber base. Its shares rose more than 5%.
The streaming giant was given a further vote of confidence following a stock rating upgrade from Buckingham Research.
"We are raising our rating on Netflix to buy from underperform and increasing our price target to $406 from $349," it said.
Cloud company Twilio (NYSE:TWLO) hit record highs after its quarterly results, released Tuesday postmarket, topped third-quarter estimates. Fourth-quarter guidance also crushed consensus. Its shares surged more than 30%.
For the fourth quarter ending in December, the cloud company said it anticipates earnings per share to be in the range of $0.03 to $0.04 and revenue to be in the range of $183 million to $185 million. Analysts had projected earnings of $0.02 a share and revenue of $161 million, according to Capital IQ estimates.
Apple (NASDAQ:AAPL), meanwhile, also rode the wave of tech optimism higher, even as analysts warned of waning demand for the company's latest slate of iPhones just a week after the tech giant revealed slowing iPhone sales. Its share were up 2%.
After the first two weeks, Apple's iPhone XR sell-through rate appears to be weakening by more than expected, raising the risk of further iPhone XR production cuts for the fourth quarter, Rosenblatt said.
The S&P 500 Information Technology index rose 2% and the S&P 500 Communications Services index, which includes Netflix, Facebook, Alphabet and telecom companies, added 1%.
