Netflix shares hit an all-time high after the streaming giant reported a huge increase in ad sales.

The company said it has struck deals with all major holdings and independent agencies, securing more than 150% growth through 2023 for initial ad sales commitments.

On August 20, Netflix shares rose 1.2% to $696.59. Netflix's shares have registered a 43% increase over the course of a year.

Amy Reinhard, head of advertising at Netflix, noted that the company places great strategic importance on advertising, conducting in-depth consumer research to create advertising opportunities that will be attractive to both members and brands.

Reinhard also said the company will launch an in-house ad tech platform by the end of 2025.

Amazon has increased spendings, which has hurt the company's profits and caused its shares to fall. After Amazon's earnings report was released in early August, the stock market performance of the online sales leader started to lag behind other big tech companies.

The report signaled to investors that Amazon would increase spending on artificial intelligence computing, meaning the company is exiting a period of cost-cutting that has helped boost profits and stock market value, which has more than doubled since 2022.

Investors fear that the increase in capital expenditures will negatively affect cash flows. Amazon shares are still 3% below their pre-report value, while the Magnificent Seven index is up around seven percent over the same period. Bloomberg's Magnificent Seven Index is an index of stocks of the largest technology companies, which includes Alphabet, Amazon, Apple, Meta, Microsoft, Tesla and NVIDIA.

NVIDIA, the world leader in artificial intelligence calculations, played a major role in the recovery of the stock market. Shares of NVIDIA have risen more than 20 percent since the start of July, leading the stock market overall. Thanks to this, the S&P 500 index rose by more than 7% compared to the minimum value recorded on August 5.

This impressive growth of NVIDIA is mainly explained by the company's progress in the field of artificial intelligence. Despite fluctuations in individual company stocks, the overall technology sector has been on the rise, showing sustained investor optimism about technology. Over the same period, the share prices of the Magnificent Seven companies increased their total market value by more than $1.4 trillion, accounting for about half of the S&P500's increase in market capitalization over the same period.

According to the results of polls among economists conducted by the Reuters agency, the US Federal Reserve will probably reduce the refinancing rate by 0.25 percent or 25 basis points three times by the end of the year. In this way, the regulator will try to soften the monetary policy in the conditions of inflationary pressure.

Earlier, experts predicted that the refinancing interest rate will be reduced by 2 times by the end of the year. The first reduction is expected already in September.

The latest economic indicators show that inflation has slowed down. Analysts believe that reductions in the refinancing rate will contribute to the steady growth of the economy, as loans will become cheaper, which will stimulate investment and a recession will not occur.

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