WEBVTT - Netflix Sinks, United Airlines Surges, Strategy Gains

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>I'm Carol Masser along with Tim Stanvick. Let's get to

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<v Speaker 3>some stocks on the move. She was giggling and laughing

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<v Speaker 3>at us as we were talking.

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<v Speaker 4>That would be too We're talking about MLI, Rafaeyo. She

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<v Speaker 4>is Bloomberg News credit reporter Emily. What are you watching?

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<v Speaker 1>Okay, So you guys were just talking about how we're

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<v Speaker 1>seeing a risk on rally with most of the equity market.

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<v Speaker 1>But let's start with Netflix because that was a big

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<v Speaker 1>name that reported earnings last night. Ticker NFLX, one of

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<v Speaker 1>the worst performers in the S and P five hundred

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<v Speaker 1>down about nine percent, actually saw its biggest inter day

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<v Speaker 1>drop today since April twenty twenty two. It's erased some

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<v Speaker 1>of those losses, but it's still deeply in the red.

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<v Speaker 1>The second quarter revenue and EPs forecast missed last night,

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<v Speaker 1>and when you look at what most of Wallstreet is saying,

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<v Speaker 1>there's just kind of like disappointment with Netflix, and I

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<v Speaker 1>think these earnings results, it's not like there was anything dire,

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<v Speaker 1>but expectations were quite high heading into this. Cities comments

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<v Speaker 1>particularly stood out to me. They said that the report

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<v Speaker 1>is disappointing because even after Netflix abandons its bid for

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<v Speaker 1>Warner Brothers, investors kind of suspected that we would see

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<v Speaker 1>a share repurchase and they would raise their full year

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<v Speaker 1>twenty twenty six margin outlook. But instead management suggested no

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<v Speaker 1>change to their capital allocation strategy. They just maintained the outlook,

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<v Speaker 1>and then they provided a worse than expected guidance. So overall,

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<v Speaker 1>that kind of expected tailwind of oh, now they don't

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<v Speaker 1>have this like big deal that potentially they were going

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<v Speaker 1>to do, They're going to have maybe a healthier balance sheet,

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<v Speaker 1>It just didn't really seem like that came through in

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<v Speaker 1>these earnings.

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<v Speaker 3>Yeah, maybe it's just expectations, right, Yeah, Yeah, that's what's.

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<v Speaker 4>Makes a point to say this in the letter every quarter,

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<v Speaker 4>that what our guidance that we're giving is is like

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<v Speaker 4>the internal guidance that we use, like we don't at it.

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<v Speaker 4>We you know, what you see is what you get.

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<v Speaker 3>That's the number that they believe in and stick to. Yeah,

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<v Speaker 3>we've been talking about this a lot. You know, we

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<v Speaker 3>also just talked with our Felix Gillette, who covers the

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<v Speaker 3>media and entertainment industry, and you know, this is the

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<v Speaker 3>massive player in the streaming area by a wide margin.

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<v Speaker 3>So I invented it right, exactly.

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<v Speaker 1>So, but they got a lot of competition, like we

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<v Speaker 1>were talking about yesterday. Yeah, there's just so many options

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<v Speaker 1>for streaming services when you go to sit down on

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<v Speaker 1>the couch at night.

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<v Speaker 4>But Netflix would say our biggest competition is YouTube and

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<v Speaker 4>that's not even something exactly, Yeah that people think about

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<v Speaker 4>as like, you know.

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<v Speaker 3>Streaming exactly or you could sleep, Yeah.

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<v Speaker 4>You could just not on a Friday night, Carol, just

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<v Speaker 4>say it's pizza and Netflix.

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<v Speaker 3>I know that's for HBO or some step stars. I

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<v Speaker 3>don't know.

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<v Speaker 4>All right, let's move on United Airlines also on your radar.

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<v Speaker 1>Yes, so we're seeing a pretty big rally today in

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<v Speaker 1>airline consumer discretion stocks. I picked United specifically because they're

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<v Speaker 1>up well, they were up in the double digits now

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<v Speaker 1>up just about seven percent, about eleven percent pop a

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<v Speaker 1>little bit earlier for that stock. Ual is the ticker.

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<v Speaker 1>And again this is all coming on traders kind of

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<v Speaker 1>reading the recent geopolitical news as positive for the equity market.

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<v Speaker 1>We had earlier today, Iron saying they would open the

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<v Speaker 1>strait of horn Moose, So that's brought oil prices at

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<v Speaker 1>least today down. That was something that was really pressuring

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<v Speaker 1>these airline stocks, the idea that energy prices were going

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<v Speaker 1>to go higher. Airlines, We're going to have to pay

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<v Speaker 1>more for jet fuel. At least in the trade today,

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<v Speaker 1>that move is you know, erasing itself, and we're seeing

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<v Speaker 1>these airlines stocks higher.

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<v Speaker 3>All nine names in the S and P Supercomposite Airline

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<v Speaker 3>Index are higher in today's session. So you see discretionaire overall,

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<v Speaker 3>and a lot of travel like cruise lines, right, who

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<v Speaker 3>are obviously are impacted by all of this. All right,

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<v Speaker 3>let's get to I love that you're going to go here.

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<v Speaker 3>I'm thinking to add this to my gainer Listka.

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<v Speaker 1>Well, yeah, because I was going to pick a cruise line,

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<v Speaker 1>but I thought that was the matic love just the

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<v Speaker 1>same as United Airlines. So I'm actually going with my

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<v Speaker 1>strategy formerly known as micro Strategy, the ticker MSTR. Of course,

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<v Speaker 1>this is the bitcoin holding company, so it's very tied

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<v Speaker 1>to risk on moves in the equity market and of

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<v Speaker 1>course a move in bitcoin. So we're seeing bitcoin above

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<v Speaker 1>seventy seven thousand, and that's the first time in a

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<v Speaker 1>couple of weeks that we've seen I think the first

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<v Speaker 1>time since February that we've seen it top seventy eight thousand. Again,

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<v Speaker 1>all on this risk, on on this positive development in

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<v Speaker 1>the geopolity.

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<v Speaker 4>Micro strategy up, sorry, strategy up more than ten percent

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<v Speaker 4>as a result.

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<v Speaker 1>Yes, yeah, of today about ten percent.

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<v Speaker 3>Big move to thepside. Emily Grafel, Thank you, OA Stockmovers.

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<v Speaker 2>Check it out.

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<v Speaker 4>Mm hmm