Software stocks rocket higher as divided government could put corporate tax hikes off the table, analyst says

Evercore argues that companies generating a large portion of their revenue from the U.S., like TurboTax maker Intuit, could have faced a “bigger issue” from rising corporate tax rates. The likelihood of tax hikes is now lower given the expectation for divided government.

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Software stocks are surging in Wednesday trading, with one analyst highlighting that the U.S. election results thus far suggest a divided government, which reduces the potential for corporate tax hikes.

“While the election was NOT going to be a major issue fundamentally for software no matter the outcome, the current forecast for a split government takes the risk of higher corporate taxes off the table (for now) and we expect that the focus can shift back to long-term fundamentals (positive), valuations relative to interest rates (mixed), and some of the key themes/topics for CY21,” Evercore ISI analyst Kirk Materne said in a Wednesday morning

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Netflix hikes prices on standard and premium streaming subscriptions

is raising the monthly subscription fees for its standard and premium plans. A standard subscription, the most popular Netflix offering, will now cost $14 a month, or $1 more a month than before. A premium subscription — which unlocks 4K resolution and HDR, along with an increase in the number of screens you can simultaneously stream from — will now cost $18 a month, a jump of $2.

The move comes as many people continue to hunker down in their homes amid the ongoing COVID-19 pandemic, putting extra emphasis on the demand for streaming entertainment from an increasingly crowded field. Within the last year, competition has arrived in the form of streaming services including Apple TV Plus
, Disney Plus, HBO Max
, Peacock and Quibi.

“We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our

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