As prices grow steeper and production and harvest slows, the commodities market continues to witness high volatility. Consumers may be interested to note that streaming giant, Netflix, as well as coffee, have both risen in value, while Tesla and Natural Gas have dropped.
According to Kate Leaman, chief market analyst at AvaTrade, the volatility in the markets is a result of the following, “Looking at our most rising table this week, Netflix has seen its value rise significantly due to a boost in subscriber growth. This is a result of password-sharing crackdown efforts, with the cancel rate was lower than anticipated. Additionally, Netflix reported that in the third quarter alone, 8.76 million new global subscribers joined the streaming giant. This is higher than the 5.49 million initially predicted by Wall Street.
“What’s more, a day after Netflix announced that it was raising its subscription prices for those in the US, UK, and France, shares in the group rose as this made the stock more attractive to investors.
“Elsewhere, the value of coffee has also increased in value. This comes at a time when Vietnam, the second largest coffee export in the world, reported that coffee harvest is expected to fall more than -7% to 1.67 MMT this year, which is the lowest crop in 4 years. As coffee inventories continue to shrink while demand remains high, prices have inevitably risen.
“In this week’s falling table*, Tesla has plummeted in value. In fact, this week represents the stock’s worst weekly performance so far this year. Tesla’s gross margins dropped to 17.9% in the third quarter, a noticeable drop from its 25.1% gross margins in Q3 2022.
“This drop in value follows CEO Elon Musk’s claim that production of the company’s long-awaited Cybertrucks was proving to be challenging, representing a concern for both investors and customers. This comes at a time when factory upgrades have increased Tesla’s production costs and the company has also suffered from hefty expenses on research and development, such as its artificial intelligence plans, as well as the Cybertruck.
“What’s more, Natural Gas has also dropped in value. As gas supply towards Europe has increased above the average amount, prices have dropped as supply outweighs demand. Elsewhere, favourable and warmer US weather conditions have also caused demand for the commodity to lower. Nevertheless, with the ongoing conflict in the Middle East, this could easily change, and we expect to see this reflected in our most rising/falling instruments over the coming weeks.”
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