Friday's Morning Movers: NFLX Upgrade, TTD Downgrade, GAP Misses Earnings
•March 6, 2026
0
Why It Matters
The updates signal a shift toward advertising and AI as primary growth levers, while retail earnings volatility highlights operational risks that can quickly sway market sentiment.
Key Takeaways
- •Gap missed earnings, citing winter storms and store closures.
- •Old Navy sales rose 3%, below analyst expectations.
- •Netflix upgraded to Buy, price target $115, AI ad growth.
- •Trade Desk faces mixed ratings; Wedbush downgrades, Evercore remains bullish.
- •Advertising revenue viewed as key growth engine for Netflix, Trade Desk.
Summary
The segment opened with Gap Inc.’s earnings miss, followed by a CFRA upgrade on Netflix and divergent analyst views on The Trade Desk.
Gap reported Q4 revenue of $4.236 billion versus $4.244 billion expected and EPS of $0.45, missing both forecasts. Winter storms forced temporary store closures, dragging Old Navy’s comparable sales to a modest 3% rise and Athleta’s comps down double‑digits. Netflix earned a CFRA “Buy” with a new $115 price target, citing accelerating ad‑supported growth, generative‑AI initiatives, and international expansion. The Trade Desk’s stock slipped despite a 21% weekly gain, as Wedbush cut its rating to underperform, projecting only $42 million incremental EBITDA from a prospective OpenAI partnership, while Evercore kept an outperform stance, betting on AI‑driven inventory.
CEO Richard Dixon said Gap’s namesake brand is “regaining cultural relevance,” yet the quarter’s numbers fell short. CFRA analyst highlighted that Netflix’s ad business could add $1.5‑$3 billion in revenue this year. Wedbush warned investors are over‑estimating the OpenAI tie‑up’s impact, whereas Evercore argued it could open a new advertising channel.
For investors, Gap’s miss underscores the fragility of mid‑tier retail amid weather‑related disruptions, while Netflix’s ad‑centric outlook and The Trade Desk’s AI gamble illustrate how technology‑driven revenue streams are reshaping growth expectations across sectors.
Original Description
Gap Inc. (GAP) missed on its top and bottom line, causing shares to fall 10% at the opening bell. CFRA turned bullish on Netflix (NFLX) with its upgrade while Wedbush turned bearish on the Trade Desk (TTD) with a downgrade. Diane King Hall walks investors through the top stock stories to start the final trading day of a volatile week.
======== Schwab Network ========
Empowering every investor and trader, every market day.
Subscribe to the Market Minute newsletter - https://schwabnetwork.com/subscribe
Download the iOS app - https://apps.apple.com/us/app/schwab-network/id1460719185
Download the Amazon Fire Tv App - https://www.amazon.com/TD-Ameritrade-Network/dp/B07KRD76C7
Watch on Vizio - https://www.vizio.com/en/watchfreeplus-explore
Watch on DistroTV - https://www.distro.tv/live/schwab-network/
Follow us on X – https://twitter.com/schwabnetwork
Follow us on Facebook – https://www.facebook.com/schwabnetwork
Follow us on LinkedIn - https://www.linkedin.com/company/schwab-network/
About Schwab Network - https://schwabnetwork.com/about
#netflix #thetradedesk #gap #economy #finance #investing #marketnews #stock #stockmarket #trading #live #schwabnetwork #nflx #ttd #streaming #ai #artificialintelligence #retail #ecommerce #shopping #clothesshopping #chart #iran #energy #crudeoil #oil #volatility
0
Comments
Want to join the conversation?
Loading comments...