Netflix (NFLX) shares have been struggling for months. Heading into this past week's fateful fourth-quarter earnings report, there were worries about increased competition from Walt Disney (DIS), Apple (AAPL), and others, along with consumers' reaction to a recent price hike, Eric J. Savitz writes in this week's edition of Barron's. As it turned out, Thursday's report was a big deal, just not in the way that bulls would have liked. Netflix missed subscriber estimates, the only number that matters to investors, the author notes. Netflix shares plunged more than 20% following results, and what makes the whole situation more worrisome is that Netflix couldn't cleanly explain its soft outlook, Savitz adds. Despite this quarter's terrible reviews, it might be time to start nibbling, he argues. Reference Link

his past week, Goldman shares fell 10%, leaving them 19% below their November high, after fourth-quarter earnings of $10.81 a share fell short of expectations for the first time in seven quarters, Andrew Bary writes in this week's edition of Barron's. The selloff provides an opportunity to invest in Wall Street's most prestigious investment bank and trading house at an attractive price, the author contends. Reference Link

Of the six big banks that posted fourth-quarter results this month, only three saw their stocks rise on their respective earnings day: Morgan Stanley (MS), Bank of America (BAC), and Wells Fargo (WFC), Carleton English writes in this week's edition of Barron's. The banks differ in areas of focus, but they share one key thing: better expense management than their less fortunate peers, he adds. Looking ahead, an investor can't go wrong choosing any of these three stocks, albeit for very different reasons, the author contends. Reference Link

If rates keep rising as the Federal Reserve tightens monetary policy, housing stocks will struggle as home loans grow less affordable. The outlook doesn't look great for mortgage originators either, with volumes likely to fall, Daren Fonda writes in this week's edition of Barron's. But one mortgage company could be a winner: Mr. Cooper Group, the author contends. The company, rebranded from Nationstar Mortgage in 2017, originates loans like other housing lenders. But about half its revenue comes from servicing-processing payments, handling escrows, and dealing with loan issues, he adds. Cooper earns a higher percentage of its revenue from servicing than any other major mortgage company. And the business gains value in a rising-rate climate-boosting the asset on Cooper's balance sheet, Fonda argues. Reference Link

Microsoft (MSFT) announced on Tuesday that it had agreed to buy Activision Blizzard (ATVI) in an all-cash deal valued at nearly $69 billion, and speculation sparked a rally in shares of Electronic Arts (EA) Take-Two Interactive (TTWO), Eric J. Savitz writes in this week's edition of Barron's. For investors, there are multiple ways to play the merger. Anyone convinced the deal will go through can buy Activision shares. But there's plenty of risk, and the potential reward is capped by the deal price, limiting upside to about 15%, the author notes. Investors can also bet on the potential of additional consolidation by buying shares of takeover candidates like EA, Take-Two, and the other game publishers that rallied this past week, Savitz contends. Shares of mobile videogame maker Zynga (ZNGA) soared earlier this month after Take-Two said it was buying the company for $12.7 billion. But the better, less speculative bet is Microsoft itself, he argued, adding that the stock has been a laggard over the past few months, but seems well-positioned for double-digit earnings growth as far as the eye can see. Reference Link