Netflix Inc. (NFLX) — The movie rental company said after the markets closed Monday that it added 7.4 million subscribers during the first three months of the year, with 125 million worldwide. Wall Street expected the company to add 6.5 million subscribers, according to FactSet. Netflix also said it would bring in 6.2 million more customers from April through June, one million more than analysts predicted. Netflix is spending up to $8 billion on global TV shows and movies in 2018. As it has expanded to some 190 countries, investors have accepted losses in exchange for the potential of growth. The company's market capitalization is $137.2 billion, more than double a year earlier. Net income rose to $290.1 million, or 64 cents per share, in the quarter ended March 31, from $178.2 million, or 40 cents per share, a year earlier. Revenue grew 40 percent year-over-year, to $3.7 billion, the fastest pace in the company's history. The company's shares were trading after hours for $326.03, up $18.25, or 5.9 percent, after closing down $3.87.
Icahn Enterprises LP (IEP), Tropicana Entertainment Inc. (TPCA), Eldorado Resorts Inc. (ERI) and Gaming and Leisure Properties Inc. (GLPI) and MGM Resorts International (MGM) — Carl Icahn's company struck an approximately $1.85 billion deal to fuse the gambling and hotel operations of Tropicana Entertainment to Eldorado Resorts Inc. The agreement includes the sale of Tropicana's real estate to Gaming and Leisure Properties Inc. It doesn't include Tropicana's Aruba assets, which will be disposed of as a condition to closing. Eldorado is acquiring the operating assets of seven casinos in six states. The deal is targeted to close during the second half of the year. Eldorado also announced it is buying the Grand Victoria Casino in Elgin, Illinois, from MGM Resorts International for $327.5 million in cash. Icahn Enterprises shares closed Monday at $61.81, up 35 cents; Tropicana shares were $69.75, up $14.75, or 26.8 percent; Eldorado shares were $41.50, up $5.80, or 16.3 percent; Gaming and Leisure shares were $34.64, up $1.35, or 4.1 percent; and MGM shares were $34.77, up 37 cents.
Bank of America Corp. (BAC) — The consumer banking giant's profits rose to a record $6.9 billion last quarter, thanks in part to the new tax law and higher interest rates. It earned $6.92 billion, or 62 cents per share, up from $5.34 billion, or 45 cents a share, from the same period a year ago. Analysts had been expecting a per-share profit of 59 cents, according to FactSet. While higher interest rates should translate into better interest rates for savers, most of the benefits have gone to the banks, not account holders. Bank of America paid just an average of 0.30 percent on its interest-earning deposits last quarter, up from 0.09 percent a year earlier. Total revenue for Bank of America in the quarter was $23.13 billion, up from $22.25 billion in the same period a year earlier. Shares were $29.93, up 13 cents.
WPP plc (WPP) — Shares in the world's biggest advertising company have fallen amid speculation it will be broken up after the resignation of CEO Martin Sorrell. Sorrell, who built the U.K.-based firm into a conglomerate during his 33 years at the helm, stepped down Saturday after an investigation into allegations he misused company assets. He denies any wrongdoing. The company's shares closed in London at 1,111 pence, down 77 pence, or 6.5 percent.