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The economy may be heading into a recession next year. Inflation remains around 8%, and layoffs are mounting, particularly in the tech sector. Consumers have already been tightening their budgets, and they may have to cut costs even further next year. The bearish outlook on the e

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Chipotle Mexican Grill Inc (Symbol: CMG), where a total of 8,955 contracts have traded so far, representing approximately 895,500 underlying shares. That amounts to abo

What happened Shares of Netflix (NASDAQ: NFLX) traded 3.5% higher at 3:20 p.m. EST, sparked by a few positive words from an analyst firm. Netflix stock rose as much as 4.5% earlier in the trading session.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the First Trust Dow Jones Internet Index Fund (Symbol: FDN) where we have detected an approximate $59.0 million dollar outflow -- that's a 1.4% decrease

The tech-heavy Nasdaq led Wall Street's main indexes higher on Tuesday as data providing further proof of cooling inflation boosted bets of smaller interest rate hikes by the Federal Reserve.

In today's struggling market, it isn't too difficult to find stocks that have had a difficult past 10 months, and that makes it an excellent time to shop for great stocks that are on sale. Of course, just because a company's shares are down does not necessarily mean they are wort

There is a lot to like about Netflix ( NASDAQ: NFLX ) currently, with the company's most recent results reassuring us on multiple fronts. These include strong momentum in net paid memberships and its recently launched ad-supported model, which should boost revenues anew. That said, it's hard to tell whether Netflix's upcoming earnings growth prospects justify its current valuation. Accordingly, I am neutral on the stock. Netflix is Heading Upward Netflix's Q3 results included multiple positive developments. Coming off a relatively disappointing Q2,  the company posted revenue growth of 6% to $7.9 billion, driven by 5% growth in average paid memberships and a 1% increase in average revenue per membership (ARM). This may sound like a soft number, but you have to consider two points here. Firstly, Netflix's revenues were greatly impacted by a much stronger dollar compared to last year. Specifically, excluding the impact of foreign exchange, revenue and ARM rose 13% and 3.8% year-over-year, respectively. Secondly, Netflix crushed last quarter's expectations regarding its paid net additions. In particular, while management had forecasted net paid additions to land close to one million in Q2, in Q3, this figure came in at a bloated 2.4 million. What Do NFLX Numbers Tell Us? The initial takeaway from these numbers is that Netflix remains an incredibly strong player in the industry that continues to grow on top of last year's inflated results. Further, we saw an increase in new paid users and ARM, and that's after the company implemented more than one price increase over the past year. This demonstrates Netflix's strong brand value and viewers' willingness to stick to the platform despite  the growing wrath of its competitors. In fact, it's quite impressive to see that net paid additions are actually accelerating despite concerns that members would cancel their subscriptions during a highly uncertain macro environment like the one we are currently experiencing. If anything, Netflix's Q3 results demonstrated that Netflix has become a consumer staple with inelastic demand dynamics. What about the Ad-Supported plan? Another aspect to like about Netflix is that the company's lower-priced ad-supported plan launched in 12 countries in November, only six months after its initial announcement. Thus, for the first time, Netflix's revenues will be diversified away from its subscription plans solely. In my view, the ad-supported model should end up being a new growth catalyst for Netflix, as the company will now start generating additional revenues from an entirely new user base, which would previously refuse to pay any money for the platform. Simply put, it benefits everyone. With the Basic Ads plan set to push only ~5 minutes of advertising per hour, users won't be bombarded with annoying program pauses. Simultaneously, advertisers should be able to push premium ad content based on relevant user data, which means that Netflix should be able to charge above-average ad rates, thus creating a new, highly-profitable segment. Remember that Netflix will be offering content from its existing catalog. It won't take on new expenses to fund the ad-supported model. Thus, most of its ad revenues should end up directly in its bottom line. NFLX - Questionable Valuation We have so far talked about revenue and user growth, which are certainly great metrics. I also just mentioned that Netflix's ad-supported model should be highly profitable. However, does this translate to adequate growth in net income that will justify the stock's current valuation? Here's where I become cautious. This is because Netflix's business model, by nature, is very capital-intensive. To retain its subscriber and hopefully further grow its viewer base, Netflix needs to produce new content consistently. Content gets old fast. If you don't produce new, exciting content all year long, your competitor will, and subscribers will shift sides. Thus, while Netflix may look like it's reporting solid profits, a noteworthy portion of these profits ends up in new content expenditures. Regardless, based on the company's performance year-to-date and management Q4 outlook, the consensus earnings-per-share estimate for Fiscal 2022 stands at $10.37. Accordingly, the stock trades at a forward P/E ratio of 28.9x. In my view, this is a rather rich valuation multiple, which demands double-digit earnings growth ahead. Could it be achieved by Netflix's strong momentum and new contributions from the company's ad-supported model? Maybe. However, there is a thin margin of safety for current investors if earnings don't grow quickly. Is NFLX Stock a Buy, According to Analysts? Turning to Wall Street, Netflix has a Moderate Buy consensus rating based on 13 Buys, 14 Holds, and four Sells assigned in the past three months. At $284.20, the average Netflix stock forecast implies 5% downside potential. Takeaway: Speculation Remains In line with the mixed sentiment from analysts, Netflix's investment case appears to be somewhat speculative. Its most recent developments have been undoubtedly cheerful. However, the company's future earnings growth will determine the stock's upside potential. Disclosure 

What happened Shares of streaming giant Netflix (NASDAQ: NFLX) closed Monday's trading session up 3.2%, decisively outperforming the major U.S. indexes, which declined.

What happened Shares of Meta Platforms (NASDAQ: META) were rising more than your average tech stock today, rallying 2.5% as of 1:48 p.m. EST.

Unusual Whales saw unusual or noteworthy options trading volume and activity in NFLX 12/2 C $325.00.

Video games maker CD Projekt CDR.WA announced in a Twitter post on Monday that it will release the next-generation update to its flagship game Witcher 3 on Dec. 14.

Warner Bros. Discovery (NASDAQ: WBD) posted a disappointing third-quarter report on Nov. 3. The media company's revenue declined 11% year over year (down 8% in constant-currency terms) to $9.82 billion, which missed analysts' estimates by $520 million. Its adjusted earnings befor

Alibaba ( NYSE:BABA ), JD.com ( NASDAQ:JD ), and TJX Companies ( NYSE:TJX ) will announce their quarterly results this week. While macro challenges and their impact on consumption remain a concern, TipRanks’  Website Traffic screener shows sequential growth in web visit trends for all three, implying that these companies could produce improved financials. Website Screener: Leading Indicator of Future Stock Behavior It's important to monitor a company's website domains' performance, as it helps investors analyze how the changes in consumer behavior might affect the upcoming earnings report and the company’s stock price. Take the example of Netflix ( NASDAQ:NFLX ). Our Website Traffic screener showed ahead of its earnings that  NFLX’s web visits were rising. This translated into higher user engagement and better-than-expected paid subscriber additions. Thanks to the improvement, NFLX stock closed higher post the Q3 earnings report. Let's take a look at how BABA, JD, and TJX are faring in their website traffic, ahead of earnings. Alibaba   Our screener shows that things are improving for Alibaba, which has struggled amid a slowdown in consumption and heightened competition. TipRanks’ Website Traffic screener shows that the number of visits to alibaba.com and its two other websites (aliexpress.com and taobao.com)  increased 36.4% (sequentially) for the September ending (Q2) quarter.  The impact of improving traffic is also reflected in Alibaba’s strong performance during the 11.11 Global Shopping Festival. The company announced that its GMV (Gross Merchandise Volume) performance was in line with the prior year despite macro concerns.   Alibaba is scheduled to announce its Q2 financials on November 17. Alibaba has exceeded analysts’ earnings estimates in the last three consecutive quarters. As for Q2, analysts expect Alibaba to  post earnings of $1.67 a share.  Is BABA a Buy or Hold? On TipRanks, BABA stock is a Strong Buy. It has nine unanimous Buy recommendations. Moreover, given the slump in BABA stock over the past year, analysts’ price target of $137.78 implies 94.7% upside potential.  However, with hedge funds selling a whopping 12.7M BABA stock last quarter, it has an  Underperform Smart Score of two out of 10.  JD.com Like Alibaba, traffic trends have shown solid improvement for JD.com. Per the TipRanks’ Website Traffic tool, the number of visits to jd.com and its other website (aihuishou.com)  increased by 38.8% in Q3 over the previous quarter.  The improvement in traffic led to a strong performance during the recently concluded 2022 Singles’ Day Grand Promotion event. JD.com highlighted that the growth rate exceeded the industry average during the period (from October 31 to November 11). JD.com is set to report its Q3 financial results on November 18. The company has surpassed analysts’ earnings estimate in the last four consecutive quarters. As for Q3, analysts expect JD.com to post  earnings of $0.68 a share, reflecting an increase from the prior year and the previous quarter. Is JD.com a Good Stock to Buy? On TipRanks, JD.com stock has a Strong Buy consensus rating based on 12 Buy and one Hold recommendations. Meanwhile, analysts’ average price target of $80.15 implies 63.8% upside potential.  While analysts are bullish, hedge funds sold 18.7M JD stock last quarter. Overall, JD stock has a  Neutral Smart Score of seven on 10.  TJX Companies This off-price home fashion and apparel retailer has benefited from its value proposition. The company has delivered strong financials so far despite the challenging retail environment. Our website traffic tool shows that the momentum in its business has sustained in Q3. However, tough year-over-year comparisons could hurt TJX’s sales growth.  Per the tool, the visits to tjmaxx.com and its two other websites (marshalls.com and sierra.com) g rew 19.2% quarter-over-quarter in Q3.  TJX will announce its Q3 financials on November 16. Analysts expect TJX to  post earnings of $0.80 a share in Q3, reflecting an increase over the previous quarter. However, EPS could decline year-over-year due to the tough year-over-year comparisons. Is TJX a Buy, Sell, or Hold?  TJX stock is a Strong Buy on TipRanks based on 12 Buy and two Hold recommendations. Further, analysts’ average price target of $78.07 implies 5.6% upside potential.  While insiders have sold TJX stock worth $11.9M in the last three months, it carries an Outperform Smart Score of nine on 10.  Bottom Line  Website traffic trends are pointing to a recovery in the financials of these companies. As BABA and JD stocks have corrected quite a lot, any improvement in their financials could significantly lift their stock prices. Meanwhile, TJX has outperformed the benchmark index over the past six months and faces tough comparisons. Nevertheless, TJX is expected to gain from its attractive pricing, which could support the uptrend in its stock.  Disclosure 

Alibaba (NYSE:BABA), JD.com (NASDAQ:JD), and TJX Companies (NYSE:TJX) will announce their quarterly results this week. While macro challenges and their impact on consumption remain a concern, TipRanks’ Website Traffic screener shows sequential growth in web visit trends for all three, implying that these companies could produce improved financials.

Website Screener: Leading Indicator of Future Stock Behavior

It's important to monitor a company's website domains' performance, as it helps investors analyze how the changes in consumer behavior might affect the upcoming earnings report and the company’s stock price.

Take the example of Netflix (NASDAQ:NFLX). Our Website Traffic screener showed ahead of its earnings that NFLX’s web visits were rising. This translated into higher user engagement and better-than-expected paid subscriber additions. Thanks to the improvement, NFLX stock closed higher post the Q3 earnings report.

Let's take a look at how BABA, JD, and TJX are faring in their website traffic, ahead of earnings.

Alibaba  

Our screener shows that things are improving for Alibaba, which has struggled amid a slowdown in consumption and heightened competition. TipRanks’ Website Traffic screener shows that the number of visits to alibaba.com and its two other websites (aliexpress.com and taobao.com) increased 36.4% (sequentially) for the September ending (Q2) quarter. 

The impact of improving traffic is also reflected in Alibaba’s strong performance during the 11.11 Global Shopping Festival. The company announced that its GMV (Gross Merchandise Volume) performance was in line with the prior year despite macro concerns.  

Alibaba is scheduled to announce its Q2 financials on November 17. Alibaba has exceeded analysts’ earnings estimates in the last three consecutive quarters. As for Q2, analysts expect Alibaba to post earnings of $1.67 a share. 

Is BABA a Buy or Hold?

On TipRanks, BABA stock is a Strong Buy. It has nine unanimous Buy recommendations. Moreover, given the slump in BABA stock over the past year, analysts’ price target of $137.78 implies 94.7% upside potential. 

However, with hedge funds selling a whopping 12.7M BABA stock last quarter, it has an Underperform Smart Score of two out of 10. 

JD.com

Like Alibaba, traffic trends have shown solid improvement for JD.com. Per the TipRanks’ Website Traffic tool, the number of visits to jd.com and its other website (aihuishou.com) increased by 38.8% in Q3 over the previous quarter. 

The improvement in traffic led to a strong performance during the recently concluded 2022 Singles’ Day Grand Promotion event. JD.com highlighted that the growth rate exceeded the industry average during the period (from October 31 to November 11).

JD.com is set to report its Q3 financial results on November 18. The company has surpassed analysts’ earnings estimate in the last four consecutive quarters. As for Q3, analysts expect JD.com to post earnings of $0.68 a share, reflecting an increase from the prior year and the previous quarter.

Is JD.com a Good Stock to Buy?

On TipRanks, JD.com stock has a Strong Buy consensus rating based on 12 Buy and one Hold recommendations. Meanwhile, analysts’ average price target of $80.15 implies 63.8% upside potential. 

While analysts are bullish, hedge funds sold 18.7M JD stock last quarter. Overall, JD stock has a Neutral Smart Score of seven on 10. 

TJX Companies

This off-price home fashion and apparel retailer has benefited from its value proposition. The company has delivered strong financials so far despite the challenging retail environment. Our website traffic tool shows that the momentum in its business has sustained in Q3. However, tough year-over-year comparisons could hurt TJX’s sales growth. 

Per the tool, the visits to tjmaxx.com and its two other websites (marshalls.com and sierra.com) grew 19.2% quarter-over-quarter in Q3. 

TJX will announce its Q3 financials on November 16. Analysts expect TJX to post earnings of $0.80 a share in Q3, reflecting an increase over the previous quarter. However, EPS could decline year-over-year due to the tough year-over-year comparisons.

Is TJX a Buy, Sell, or Hold? 

TJX stock is a Strong Buy on TipRanks based on 12 Buy and two Hold recommendations. Further, analysts’ average price target of $78.07 implies 5.6% upside potential. 

While insiders have sold TJX stock worth $11.9M in the last three months, it carries an Outperform Smart Score of nine on 10. 

Bottom Line 

Website traffic trends are pointing to a recovery in the financials of these companies. As BABA and JD stocks have corrected quite a lot, any improvement in their financials could significantly lift their stock prices. Meanwhile, TJX has outperformed the benchmark index over the past six months and faces tough comparisons. Nevertheless, TJX is expected to gain from its attractive pricing, which could support the uptrend in its stock. 

Disclosure 

Disney stock (NYSE: DIS) got positively battered this week after it released fourth-quarter earnings. Both revenue and earnings per share (EPS) came in below Wall Street's expectations, with streaming costs exploding as Disney grew its subscriber base.

In this podcast, Motley Fool senior analyst Jason Moser discusses topics including:

Amid a stock market sell-off in 2022, Disney (NYSE: DIS) shares have fallen 44% since January. The company's fourth-quarter earnings release on Nov. 8 was a bit of a mixed bag, as its parks revenue soared, but its media segment took some concerning hits.

The Walt Disney Company (NYSE: DIS) released what can be described as a mixed fourth-quarter earnings report on Tuesday that tells a story of both growth and struggles. The stock initially jumped after the report, but it has since sagged. Disney stock is now down 48% over the pas