Futures muted; Covid-19 cases, Netflix earnings, Apple AirTags, UiPath, and more

Wall Street 

U.S. stocks set for muted start

Wall Street looks poised for a muted open on Wednesday, with sentiment hit by increasing Covid-19 cases, particularly in India and Japan.

Authorities in Japan are reportedly considering a state of emergency for Osaka and Tokyo to try to prevent the spread of the virus.

Tokyo reported 843 new infections on Wednesday, the first daily tally above 800 in city since January 29. Meanwhile, case numbers in Osaka hit a record-high of 1,242.

As of 5:30 a.m. ET, futures tied to the tech-heavy Nasdaq 100 fell 24 points, or 0.18% to 13,769.12. Those for the blue-chip Dow and the S&P 500 were flat.

Netflix shares slump on lower subscriber additions in Q1

On the earnings front, shares of Netflix (NASDAQ: NFLX) were sinking on Wednesday morning after the streaming giant revealed it had signed up 4 million paid subscribers in the first three months of 2021, shy of the 6 million the company had originally anticipated and less than the 16 million it added in the same period last year.

The company said late Tuesday that it also expects growth to lag even further in the current quarter to a low of just one million subscribers, due a shortage of content until the second half of the year.

Netflix posted first-quarter revenue of $7.16 billion, up 24% on a year-over-year basis and above analyst consensus estimate of $7.13 billion. Earnings came in at $3.75 a share, well ahead of analyst consensus estimate of $2.96.

Shares of Netflix were down 7.75% to $506.98 in pre-market trading. The stock ended Tuesday’s session down $549.57.

Apple introduces AirTags and new iPads

Apple (NASDAQ: AAPL) has unveiled its long-rumored AirTag, a tracking device that can be attached to personal items and then be located using the Find my iPhone app.

The company priced the device at $29, with a four-pack going for $99. It will be available for purchase starting April 30.

The tech giant also launched a super-fast iPad Pro and a razor-thin new iMac powered by a M1 chip at its “Spring Loaded” virtual event on Tuesday afternoon.

Apple also unveiled its next-gen Apple TV 4K, which comes with a A12 Bionic chip that allows it to deliver high frame rate HDR with Dolby Vision.

Shares of Apple were little changed in Wednesday pre-market trading session.

UiPath prices IPO above target range, raises $1.3 billion

UiPath, a robotic automation processing startup, said on Tuesday it sold shares in its initial public offering (IPO) at $56 apiece, above its target range, to raise $1.3 billion.

The New York-based company said it offered about 24 million shares, and that shares are due to begin trading Wednesday on the New York Stock Exchange under the symbol “PATH.”

UiPath had planned to sell 21.3 million shares at a target price range of between $52 and $54 each. The company had hiked the share offering from a range of $43 to $50 per share on Monday.