1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,920 --> 00:00:13,360 Speaker 2: This is the closing bell on this stock mover's report. 3 00:00:13,600 --> 00:00:16,560 Speaker 2: The company's making moves At the close of US trading 4 00:00:16,760 --> 00:00:21,279 Speaker 2: with Carol Masser, Tim Stenebeck, Romain, Bostik, and Scarlet Foo. 5 00:00:22,320 --> 00:00:24,279 Speaker 3: The S and P five hundred saw three hundred and 6 00:00:24,280 --> 00:00:28,280 Speaker 3: seventy three stocks move higher, one hundred and twenty seven stocks. 7 00:00:27,920 --> 00:00:30,520 Speaker 4: Move lower, and a pretty lopsided divide here. In terms 8 00:00:30,520 --> 00:00:32,720 Speaker 4: of the sector performances as well, nine out of the 9 00:00:32,800 --> 00:00:36,159 Speaker 4: eleven sector is finishing in the green financials and consumer 10 00:00:36,200 --> 00:00:38,360 Speaker 4: stables leading the way up nine tens of one percent. 11 00:00:38,400 --> 00:00:41,239 Speaker 4: Your laggered on a day is healthcare down about one 12 00:00:41,240 --> 00:00:42,040 Speaker 4: point two percent? 13 00:00:42,320 --> 00:00:44,600 Speaker 3: All right, well, very easy day for me to find 14 00:00:44,680 --> 00:00:47,080 Speaker 3: stocks that moved higher. I want to start with the 15 00:00:47,080 --> 00:00:51,440 Speaker 3: most actively traded stock today, Lucid Group, the electric vehicle maker, 16 00:00:51,479 --> 00:00:55,120 Speaker 3: up thirty six percent. They rose the most intra day ever. 17 00:00:55,480 --> 00:00:57,600 Speaker 3: Investors learned that Hauberg has any three. 18 00:00:57,960 --> 00:01:01,040 Speaker 1: Dollars now crossing the wire right now him my apologies 19 00:01:01,080 --> 00:01:03,480 Speaker 1: here two q EPs. We're going to start with the 20 00:01:03,480 --> 00:01:06,639 Speaker 1: bottom line here coming in right now at seven dollars 21 00:01:06,640 --> 00:01:08,800 Speaker 1: and nineteen cents a share. That is a beat the 22 00:01:08,840 --> 00:01:11,319 Speaker 1: street on average was looking for seven dollars and eight 23 00:01:11,440 --> 00:01:14,000 Speaker 1: cents the companies that operating income came in at three 24 00:01:14,040 --> 00:01:16,600 Speaker 1: point sixty three billion and revenue on the top line 25 00:01:16,640 --> 00:01:20,240 Speaker 1: eleven point five to three billion, So revenue rose beat estimates, 26 00:01:20,240 --> 00:01:24,520 Speaker 1: profit rows beat estimates, gross margin, operating margin excuse me, 27 00:01:24,760 --> 00:01:27,600 Speaker 1: expanded wide and in the most recent quarter, and here's 28 00:01:27,600 --> 00:01:29,640 Speaker 1: your guidance for the full year, the company says that 29 00:01:29,720 --> 00:01:31,800 Speaker 1: revenue will be in a range of forty four point 30 00:01:31,840 --> 00:01:35,120 Speaker 1: eight to forty four forty five point two billion dollars. 31 00:01:35,560 --> 00:01:38,600 Speaker 1: That's above the guidance that had previously given above street 32 00:01:38,720 --> 00:01:41,000 Speaker 1: estimates as well here, so it looks like a beat 33 00:01:41,000 --> 00:01:43,080 Speaker 1: on the top end bottom line for the second quarter. 34 00:01:43,240 --> 00:01:45,160 Speaker 1: The guidance for the third quarter and the guidance for 35 00:01:45,200 --> 00:01:47,680 Speaker 1: the full year also coming in above expectations. 36 00:01:47,760 --> 00:01:50,080 Speaker 4: And it's worth noting here that in the statement they 37 00:01:50,080 --> 00:01:52,960 Speaker 4: say the revenue and operating income slightly above our guidance 38 00:01:53,040 --> 00:01:55,880 Speaker 4: due primarily to FX, net of hedging and the timing 39 00:01:55,880 --> 00:02:00,120 Speaker 4: of expenses. So keep an eye on how companies play 40 00:02:00,160 --> 00:02:03,440 Speaker 4: in the fold in the dollar story, because the dollar's weakness, 41 00:02:03,560 --> 00:02:05,440 Speaker 4: of course in the last couple of months has really 42 00:02:05,480 --> 00:02:08,440 Speaker 4: played a role here, especially for these multinational companies. 43 00:02:08,520 --> 00:02:11,520 Speaker 3: Stock up more than forty percent going into this year. 44 00:02:11,560 --> 00:02:14,679 Speaker 3: Going into this report, it's pretty much doubled over the 45 00:02:14,760 --> 00:02:16,840 Speaker 3: last year, adding about two hundred fifty billion dollars in 46 00:02:16,880 --> 00:02:19,680 Speaker 3: market cap. The company calling out in the second quarter 47 00:02:19,760 --> 00:02:23,200 Speaker 3: Squid Game Season three, Sirens Ginny and Georgia Season three, 48 00:02:23,560 --> 00:02:26,919 Speaker 3: the turnout secrets we keep in Tyler Perry's straw as 49 00:02:26,919 --> 00:02:29,959 Speaker 3: well as extraterrestrial as hits that brought in viewer. 50 00:02:30,200 --> 00:02:31,720 Speaker 1: I just just want real quickly, I just want to 51 00:02:31,720 --> 00:02:33,640 Speaker 1: go back to that revenue number for US one second, 52 00:02:33,639 --> 00:02:35,560 Speaker 1: particularly with the guidance. I mean, they are making it 53 00:02:35,600 --> 00:02:38,240 Speaker 1: clear in the press release that they have finally rolled 54 00:02:38,240 --> 00:02:41,000 Speaker 1: out that ad tech platform. They did say that year 55 00:02:41,040 --> 00:02:43,200 Speaker 1: over year, the revenue numbers that we saw for the 56 00:02:43,280 --> 00:02:46,200 Speaker 1: quarter did include an increase in that ad spend or 57 00:02:46,200 --> 00:02:48,320 Speaker 1: that ad take that they're getting, and they say that 58 00:02:48,360 --> 00:02:52,040 Speaker 1: they expect that revenue from the ads business alone to 59 00:02:52,240 --> 00:02:53,480 Speaker 1: double in. 60 00:02:53,480 --> 00:02:56,079 Speaker 5: Twenty twenty five, and remain talking about the ad business 61 00:02:56,080 --> 00:02:57,960 Speaker 5: as we think about a lot of these competitors. Of course, 62 00:02:58,000 --> 00:03:01,560 Speaker 5: we thought that news earlier that Peacock's taming service Comcast, 63 00:03:01,800 --> 00:03:04,680 Speaker 5: which is Peacock their streaming service, they raise the price 64 00:03:04,720 --> 00:03:08,400 Speaker 5: for their AD tier service by three dollars. That's more 65 00:03:08,400 --> 00:03:10,440 Speaker 5: than a thirty percent surge there. So it's going to 66 00:03:10,440 --> 00:03:12,520 Speaker 5: be interesting to see how a lot of these companies 67 00:03:12,520 --> 00:03:14,480 Speaker 5: shake out as we think about the streaming service more 68 00:03:14,480 --> 00:03:15,240 Speaker 5: broadly here. 69 00:03:15,280 --> 00:03:17,880 Speaker 4: And you wonder, with these big gains in the ad business, 70 00:03:17,919 --> 00:03:19,760 Speaker 4: whether they're going to make a push to get more 71 00:03:19,760 --> 00:03:22,040 Speaker 4: people onto the ad supported tier because it seems like 72 00:03:22,200 --> 00:03:24,720 Speaker 4: at some point it's going to overtake the subscriber business. 73 00:03:24,800 --> 00:03:27,000 Speaker 4: The subscription business as the key money maker here. 74 00:03:27,320 --> 00:03:29,680 Speaker 3: You know, we spoke to an analyst from Webush earlier 75 00:03:30,160 --> 00:03:33,160 Speaker 3: talking about, you know, going into this and what she 76 00:03:33,320 --> 00:03:37,360 Speaker 3: mentioned is that Netflix actually had quite a bit of churn, 77 00:03:37,480 --> 00:03:40,600 Speaker 3: but they have those customers coming back, so it's succeeding 78 00:03:41,080 --> 00:03:44,640 Speaker 3: when it comes to keeping those people paying for that content, 79 00:03:44,720 --> 00:03:47,480 Speaker 3: whether it's live content, whether it's sports, whether it's those 80 00:03:47,760 --> 00:03:51,000 Speaker 3: one off events like a Tyson Paul fights sort of thing. 81 00:03:51,240 --> 00:03:53,400 Speaker 3: People she said are coming back for the content over 82 00:03:53,440 --> 00:03:54,040 Speaker 3: and over again. 83 00:03:54,240 --> 00:03:56,640 Speaker 5: That's definitely what we heard to our interview with her, 84 00:03:56,680 --> 00:03:59,320 Speaker 5: and it's really interesting, especially as you think about this 85 00:03:59,440 --> 00:04:02,600 Speaker 5: being a space that's constantly evolving. We didn't expect sports 86 00:04:02,600 --> 00:04:04,400 Speaker 5: and all these live events to be what people are 87 00:04:04,400 --> 00:04:06,920 Speaker 5: coming back for, but you are really seeing them luring 88 00:04:07,040 --> 00:04:09,160 Speaker 5: in these churners and actually getting them to pay a 89 00:04:09,200 --> 00:04:11,520 Speaker 5: little bit more to get some of these opportunities in 90 00:04:11,520 --> 00:04:12,280 Speaker 5: the content here. 91 00:04:12,320 --> 00:04:14,800 Speaker 1: And they talk about in the shareholder letter about leading 92 00:04:14,840 --> 00:04:17,120 Speaker 1: deeper into that live event space. Of course, they had 93 00:04:17,120 --> 00:04:19,800 Speaker 1: the big MMA fight just last week, they had the 94 00:04:19,800 --> 00:04:22,560 Speaker 1: Canelo Crawford fight coming up in the middle of September, 95 00:04:22,560 --> 00:04:25,080 Speaker 1: and of course that's slate of NFL games that they have, 96 00:04:25,360 --> 00:04:28,880 Speaker 1: including the Christmas Day doubleheader here, and that doesn't even 97 00:04:28,880 --> 00:04:30,440 Speaker 1: get into some of the other things like the stand 98 00:04:30,520 --> 00:04:32,440 Speaker 1: up comedy and some of the other moves that they've 99 00:04:32,440 --> 00:04:35,520 Speaker 1: made to kind of keep people in that ecosystem, not 100 00:04:35,640 --> 00:04:38,400 Speaker 1: just coming in to binge watch the pre made shows, 101 00:04:38,720 --> 00:04:41,360 Speaker 1: to actually come in and come in for those live events. 102 00:04:41,440 --> 00:04:44,360 Speaker 4: It's going to be interesting to see how they strategize 103 00:04:44,680 --> 00:04:47,120 Speaker 4: what they do globally versus in the US, because even 104 00:04:47,160 --> 00:04:50,440 Speaker 4: though they're so prominent in the United States, that growth 105 00:04:50,480 --> 00:04:52,920 Speaker 4: prospect within the US is really diminished, and the growth 106 00:04:52,920 --> 00:04:56,760 Speaker 4: opportunity is really overseas. But the customers there, the viewers there, 107 00:04:56,880 --> 00:04:59,360 Speaker 4: are not as profitable as the viewers in the United States. 108 00:04:59,400 --> 00:05:01,560 Speaker 3: I just want to remind everybody about how big Netflix 109 00:05:01,600 --> 00:05:04,400 Speaker 3: has become. Remember, this is the company that invented sending 110 00:05:04,480 --> 00:05:06,720 Speaker 3: DVDs by mail. It did the pivot to streaming and 111 00:05:06,839 --> 00:05:09,839 Speaker 3: saw that before anybody else saw that. It truly invented 112 00:05:09,839 --> 00:05:14,320 Speaker 3: the category. Nowadays, on a market cap basis, it's bigger 113 00:05:14,360 --> 00:05:19,000 Speaker 3: than Walt Disney, Comcast and Warner Brothers discoveryind let's. 114 00:05:18,800 --> 00:05:20,560 Speaker 1: Go back to something that Scarlett just said too, because 115 00:05:20,560 --> 00:05:22,240 Speaker 1: it's a good point to this idea too. Of the 116 00:05:22,240 --> 00:05:24,560 Speaker 1: push that they've made overseas, and I know you mentioned 117 00:05:24,560 --> 00:05:26,760 Speaker 1: Scarlett is not quite as profitable, but they do see 118 00:05:26,760 --> 00:05:28,919 Speaker 1: that at least on the top line or revenue, the 119 00:05:28,960 --> 00:05:31,839 Speaker 1: idea that it is potentially a growth driver. They highlight 120 00:05:31,880 --> 00:05:34,000 Speaker 1: that in the press release. They highlight some of the 121 00:05:34,000 --> 00:05:37,760 Speaker 1: Spanish language content they've had, and particularly with the Gardner obviously, 122 00:05:37,839 --> 00:05:40,760 Speaker 1: the huge hits coming out of Korea and Japan, and 123 00:05:40,800 --> 00:05:42,719 Speaker 1: now of course the big deal that they made with 124 00:05:43,000 --> 00:05:46,160 Speaker 1: France to actually have live a news proadcasts there from 125 00:05:46,200 --> 00:05:46,640 Speaker 1: TF one. 126 00:05:46,880 --> 00:05:49,480 Speaker 5: Yeah, as we were chatting earlier about some of these 127 00:05:49,600 --> 00:05:52,159 Speaker 5: different contents that they have here, when we think about 128 00:05:52,160 --> 00:05:53,800 Speaker 5: a lot of the show, squad Game is one that 129 00:05:53,839 --> 00:05:56,040 Speaker 5: we have really been talking about. I'm looking at a 130 00:05:56,040 --> 00:05:58,040 Speaker 5: bi notes saying that management has really called out in 131 00:05:58,040 --> 00:06:01,040 Speaker 5: Netflix's second half of the year's late as quote a 132 00:06:01,040 --> 00:06:04,239 Speaker 5: slight embarrassment of riches, given three of its most popular 133 00:06:04,279 --> 00:06:07,080 Speaker 5: series will drop from late June through year end. So 134 00:06:07,120 --> 00:06:09,599 Speaker 5: it's interesting to see some of their biggest products and 135 00:06:09,640 --> 00:06:12,520 Speaker 5: what really gets people to come into Netflix to be 136 00:06:12,600 --> 00:06:14,400 Speaker 5: called a slight embarrassment of riches. 137 00:06:14,440 --> 00:06:18,200 Speaker 4: Here, who's excited for Stranger Things versus Wednesday versus not? 138 00:06:18,880 --> 00:06:19,359 Speaker 5: Who's not? 139 00:06:19,560 --> 00:06:20,120 Speaker 2: I'm excited. 140 00:06:20,120 --> 00:06:22,720 Speaker 1: I'm not stranger honest, no way. I mean that was 141 00:06:22,720 --> 00:06:25,240 Speaker 1: a great show for first two seasons. But you know 142 00:06:25,320 --> 00:06:27,040 Speaker 1: now I want to see you a bunch of forty years, 143 00:06:29,720 --> 00:06:32,360 Speaker 1: not just watch our show. But I am happy gil 144 00:06:32,360 --> 00:06:34,120 Speaker 1: Moore too. I'm definitely all in on that. But have 145 00:06:34,160 --> 00:06:35,760 Speaker 1: you guys seen K Pop Demon Hunters? 146 00:06:35,839 --> 00:06:36,080 Speaker 3: No? 147 00:06:36,080 --> 00:06:38,159 Speaker 5: No, should I add it to the watch list? 148 00:06:39,200 --> 00:06:39,440 Speaker 1: Now? 149 00:06:40,120 --> 00:06:43,680 Speaker 4: Surprised sometimes thought you were going to say so, I 150 00:06:43,839 --> 00:06:45,480 Speaker 4: you know what, you guys. 151 00:06:45,480 --> 00:06:47,560 Speaker 3: You guys were spending some good time talking about the 152 00:06:47,560 --> 00:06:50,280 Speaker 3: international and the opportunity for international But here in the US, 153 00:06:50,320 --> 00:06:53,239 Speaker 3: the question that I have is about what it does 154 00:06:53,279 --> 00:06:55,400 Speaker 3: with growth slowing down here in the US and how 155 00:06:55,440 --> 00:06:58,760 Speaker 3: much pricing power Netflix has to keep raising prices and 156 00:06:59,040 --> 00:07:01,080 Speaker 3: get more value from the customers that it has here 157 00:07:01,080 --> 00:07:03,039 Speaker 3: in the US now that you know new customer growth 158 00:07:03,080 --> 00:07:03,600 Speaker 3: has slowed down. 159 00:07:03,640 --> 00:07:05,560 Speaker 5: See, I never thought that we'd actually be working with 160 00:07:05,600 --> 00:07:07,960 Speaker 5: the Netflix that had ads. So it's so interesting how 161 00:07:07,960 --> 00:07:10,680 Speaker 5: you see this evolution here people are going from just 162 00:07:10,720 --> 00:07:12,480 Speaker 5: wanting to watch it all the way through to actually 163 00:07:12,560 --> 00:07:15,280 Speaker 5: being willing to pay for those little cuts in between. 164 00:07:15,480 --> 00:07:18,000 Speaker 4: Yeah, you extract more value from a saturated US market 165 00:07:18,000 --> 00:07:20,480 Speaker 4: by pushing people to the ad supported tier, and that 166 00:07:20,520 --> 00:07:22,200 Speaker 4: in turn drives up the advertising rates. 167 00:07:22,240 --> 00:07:25,000 Speaker 1: Okay, stop pushing, you know, because it's like, what so 168 00:07:25,040 --> 00:07:26,640 Speaker 1: it was six ninety nine then they moved it to 169 00:07:26,680 --> 00:07:28,960 Speaker 1: seven nine and nine for ads. I mean, I'd be 170 00:07:29,000 --> 00:07:31,520 Speaker 1: happily pay for something and without ads, I have to. 171 00:07:31,480 --> 00:07:32,040 Speaker 5: Skip the ads. 172 00:07:32,080 --> 00:07:34,800 Speaker 4: I'm sorry, Premium customer over here, Yeah. 173 00:07:34,520 --> 00:07:37,440 Speaker 1: That's going up too, Premium. 174 00:07:37,480 --> 00:07:41,520 Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with 175 00:07:41,600 --> 00:07:44,160 Speaker 2: us throughout the day for the latest roundup of companies 176 00:07:44,240 --> 00:07:47,320 Speaker 2: making news on Wall Street and for the latest market 177 00:07:47,360 --> 00:07:51,800 Speaker 2: moving headlines. Listen to Bloomberg Radio Live. Catch us on YouTube, 178 00:07:51,920 --> 00:07:55,440 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 179 00:07:55,480 --> 00:07:56,960 Speaker 2: the Bloomberg Business app.