Crackdown on password sharing boosts Netflix subscriber base

Netflix (NFLX:NASDAQ) reported net subscriber growth of 8.8 million, well ahead of expectations and marking the biggest quarterly growth since the second quarter of 2020.

The firm also said it expected an operating margin of 20% for the full-year 2023, at the top end of the company’s prior guidance.

Netflix is now limiting the use of an account to one household. The tech firm also added a new subscription option that allows users to pay less if they view advertisements before and during films and shows.

The company also said it would immediately raise U.S. prices, increasing the cost of its basic plan in the U.S. to $11.99 from $9.99 and upping the cost of its premium plan to $22.99 from $19.99.

Netflix stock was the biggest gainer in the S&P 500 Thursday, with shares

Tesla ends the week with its worst performance of the year

Tesla (TSLA:NASDAQ) shares dropped more than 15% over the last few days to close the week at $211.99. It marks the worst week for Tesla stock of the year, although shares of the electric automaker are still up 96% year-to-date.

On an earnings call to discuss the Q3 results CEO Elon Musk struck a deeply pessimistic note about the economy and emphasized that cost-cutting and price cuts would be essential for Tesla in coming quarters.

Musk also threw cold water on shareholders’ expectations for Tesla’s long-delayed Cybertruck, while declining to give details about a “robotaxi” and autonomous vehicle tech that the company has been working on and promising for years.

Okta stock plummets after hackers breach system

Shares of cybersecurity firm Okta (OKTA:NASDAQ) closed down 11.5% on Friday after the company said an unidentified hacking group had accessed files that “certain Okta customers” had uploaded to Okta’s support system.

Okta said the hackers were able to access the system using a stolen credential. Okta’s customer offerings, including its production service, were not impacted and are fully operational, the company said.

Some of the largest companies in the world use Okta to streamline their login and identity management systems, including FedEx (FDX:NYSE) and Zoom (ZM:NASDAQ).

Airline stocks fall as United Airlines slashes outlook

United Airlines (UAL:NASDAQ) on Tuesday cut its fourth-quarter forecast, reflecting the Israel-Hamas war and higher fuel costs.

Rising energy prices have already been dragging on carriers’ profit outlooks. Since war in Israel broke out earlier this month, United and its peers also face the possibility of flights to Tel Aviv being suspended through the end of 2023.

Many major airlines have stopped operating flights to Israel, including United, Delta Air Lines, and American Airlines, plus a raft of European and Asian carriers.

United Airlines’ shares fell more than 10% for the week, while US Global Jets (JETS:NYSE) an ETF that tracks airline shares also fell 5.3%.

Biden administration cracks down on AI chip exports to China.

The Commerce Department announced the new rules on Tuesday that will make it tougher for U.S. companies like Nvidia (NVDA:NASDAQ) and Intel (INTC:NASDAQ) to sell advanced semiconductors to the vast Chinese market.

The goal is to limit China’s access to such chips “that could fuel breakthroughs in artificial intelligence and sophisticated computers,” Commerce Secretary Gina Raimondo said.

Nvidia posted its worst week since September 2022 with a loss of 8.1%, while Intel finished 3.3% lower. Other chip stocks like AMD (AMD:NASDAQ) and Micron (MU:NASDAQ) fell 3.5% and 2.7% respectively.

LinkedIn lays off about 700 employees

LinkedIn announced Monday that it cut almost 700 employees, with most coming from the engineering organization. Cuts also came in the company’s finance and human resources groups.

The reductions come as the Microsoft (MSFT:NASDAQ) -owned business-oriented social network has seen year-over-year revenue growth slow for eight consecutive quarters. It grew just 5% in the second quarter, even as membership growth has accelerated each quarter for the past two years.

Microsoft shares finished the week 1.4% lower.