Stock futures mixed; Netflix earnings, Peloton, Bitcoin, and more

Wall Street stocks

Stock futures mixed as turbulence continues on Wall Street

U.S. stock markets look set for a mixed open Friday after technology stocks suffered more losses in the final hour of trading on Thursday. The selloff in the tech sector was mostly driven by a rise in long-dated Treasury yields that lowers the current value of future profits.

As of 5:20 a.m. ET, futures tied to the blue-chip Dow were up 22 points, to 34,638. The S&P 500 futures fell 5.5 points, or 0.12% to 4,469.25 while the tech-heavy Nasdaq 100 futures dropped 61 points, or 0.41% to 14,780.

At the close on Thursday, the Dow shed 313.26 points to 34,715.39, while the S&P 500 lost 50.03 points, or 1.1% 4,483 and the Nasdaq Composite gave away 186.23 points, or 1.3% to 14,154.

Netflix sinks 20% after issuing guidance below estimates

On the earnings front, Netflix (NASDAQ: NFLX) shares were under pressure in premarket hours after the company released its fourth-quarter financial results and provided a downbeat outlook for the current quarter.

The streaming giant earned $1.33 per share in the quarter, beating analysts’ estimates of 82 cents per share. Revenue came in at $7.71 billion, slightly in line with expectations.

Netflix said it added 8.3 million paid subscribers in the fourth quarter, missing its own target of 8.5 million.

For the current quarter, Netflix said it expects to add 2.5 million subscribers, well below analysts’ forecast for a gain of 4 million.

Netflix stock was down $102.00, or 20.07% to $406.25 at the time of writing.

Peloton stock rebounds as CEO denies production halt rumors

Meanwhile, Peloton Interactive (NASDAQ: PTON) shares are bouncing back after co-founder and CEO John Foley denied a CNBC report claiming the company is halting production of its products.

CNBC, citing internal documents from Peloton, had said in a report Thursday that the connected fitness company is temporarily halting production across its entire bicycle and treadmill line due to dwindling demand as gyms continue to reopen.

In a letter sent to Peloton employees and published on the company’s website, Foley described the report as “incomplete, out of context, and not reflective of Peloton’s strategy.”

Foley said the company plans to provide more details on the reductions when it publishes its quarterly numbers on Feb. 8.

Peloton stock was up 7.47% to $26.03 in the premarket trading session Friday, after plummeting 23.93% on Thursday.

Bitcoin tumbles as Russia prepares to ban on crypto activities

Bitcoin was also falling sharply early Friday after several media outlets reported that Russia has proposed a ban on the virtual coin amid growing concerns that cryptocurrencies are a threat to the country’s financial system and energy supply.

According to the report, the Central Bank of Russia proposed a blanket ban on the use and creation of all cryptocurrencies within the country.

The move by Russia, which is one of the world’s biggest crypto-mining nations, is the latest in a global cryptocurrency crackdown as authorities across the globe worry that bitcoin and other highly volatile digital currencies pose danger to financial and monetary systems.

As of writing, bitcoin was down $3,139, or 7.46% to $38,963 a coin. Other cryptocurrencies were also trading lower.