gold fell 6% overnight

📈 Netflix’s Hiccup, Gold’s Tumble, and Apple’s Global Glow

Market Recap

It has been an eventful night across markets.
Netflix stumbled on earnings (but for reasons I’m not too worried about), gold just logged its biggest one-day drop in more than a decade, and Apple continues to power toward a 4 trillion dollar valuation.

Let’s unpack what is really happening beneath the headlines.

🎬 Netflix: A One-Time Hit, Not a Long-Term Problem

Netflix (NFLX) delivered Q3 earnings that looked weaker at first glance, but the miss came down to a one-time 619 million dollar tax charge linked to a dispute in Brazil. When we exclude that, the numbers were actually strong. Revenue jumped 17 percent year-over-year to 11.51 billion dollars, driven by steady subscriber growth and expanding ad revenue.

Content continues to be Netflix’s biggest draw. Shows like Squid Game Season 3 and KPop Demon Hunters broke viewership records, and the upcoming slate (including Stranger Things 5, A House of Dynamite, and Wake Up Dead Man: A Knives Out Mystery) looks strong heading into Q4.

The ad business is also growing quickly, with revenue expected to double in 2025 and reach about 5 billion dollars by 2026.

So yes, EPS missed because of an accounting issue, but free cash flow is up, subscriber trends are healthy, and the long-term growth story is intact. Personally, I am not too worried. Sometimes the market sells first and reads the fine print later.

🥇 Gold: From Superstar to Sudden Slide

Gold’s remarkable run this year, up more than 55% year-to-date, finally hit a speed bump. The yellow metal fell 5.7% in a single day, marking its biggest one-day percentage drop since 2013 and its largest dollar decline ever recorded, closing at US$4,087.70 per ounce.

The pullback came as the U.S. dollar strengthened and traders took profits after gold’s massive rally. Other precious metals joined the slide, with platinum down 6.9 percent and silver off 7.2 percent, while gold miners such as Newmont tumbled about 9 percent.

As I mentioned to my SMG members, this kind of correction is actually healthy. When an asset behaves more like a growth stock than a safe haven, volatility is inevitable. For long-term investors who believe in gold’s role as a hedge, this drop might be a great entry point.

Sometimes, a little shakeout keeps a bull market sustainable.

📱 Apple: Still the Market’s MVP

While Netflix dealt with a tax issue and gold cooled off, Apple (AAPL) quietly hit an all-time high, closing at $262.24 and bringing its market capitalization to $3.89 trillion, just shy of the 4 trillion mark.

The iPhone 17 series is off to a hot start, with sales up 14 percent versus the iPhone 16 launch across the U.S. and China, according to Counterpoint Research. These two markets together account for roughly 60 percent of Apple’s total sales.

And it is not just hardware. Apple’s Services division, which includes iCloud, the App Store, and Apple TV Plus, continues to expand. Its new five-year deal to broadcast Formula 1 in the U.S. beginning in 2026 could become a significant driver of subscriptions and ad revenue.

Analysts are optimistic.
Loop Capital raised its target to 315 dollars, calling the iPhone 17 cycle a multi-year growth driver.
Evercore ISI and Morgan Stanley both upgraded Apple, citing stronger margins and resilient demand.
Wedbush even revived the idea of a “super-cycle” for 2025 through 2027.

The options market also shows confidence, with a Put/Call ratio of just 0.68 and relatively low implied volatility, suggesting traders expect steady gains rather than major swings.

In short, Apple remains the definition of quality growth, combining consistent execution, strong demand, and expanding ecosystem power.

💡 Pete’s Take

Netflix’s tax charge is noise, not signal. Gold’s drop is a reminder that even safe havens can overheat but remember the saying, “Only gold is money, the rest is credit”. Apple’s momentum shows what happens when a company turns innovation into habit.

The big picture is that markets are rotating and volatility is returning, but opportunity has not gone anywhere. Focus on business quality, long-term value, and patient accumulation, especially when headlines get noisy.

📣 Join Me Live on Thursday, October 23 at 9 PM

I will be hosting a live webinar for EVERYONE this Thursday at 9 PM, where we will dive deeper into

✅ How to approach gold’s sharp correction?
✅ Why Apple continues to outpace the market and how to position ahead of its earnings?
🚨 What is my next preferred trade?

Reserve your spot for the live session (limited to 300 seats) and join me as we break down this week’s action and uncover where smart money might be heading next.

See you Thursday, October 23 at 9 PM. Let’s invest smarter together.

Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.