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Friday, Oct. 21, 2022
My word-find function has been going into overdrive this earnings season, looking for a few key phrases in earnings-call transcripts: “Foreign exchange.” “Currencies.” “Dollar.”
Netflix (NFLX) Chief Financial Officer Spencer Neumann summed it up succinctly in his company’s conference call: “The FX drag is significant.”
The rise of the U.S. dollar, spurred by the Federal Reserve’s interest-rate increases, among other factors, is triggering quite the knock-on effect to corporate profits. While investors might want to strip out currency impacts to get a better idea of fundamental demand, they should also prepare for these hits to last a while.
In a report this week titled, “King Dollar Has More Room to Gain,” Wells Fargo strategist Erik Nelson…
