Hey there weekday warriors,
Netflix just put on another master class.
Enjoy the next 4 minutes and 11 seconds of blue-chip news and commentary.
Keep on snapping necks and cashing checks,
+ US stocks were “higher on Thursday as TSMC's upbeat outlook eased worries about artificial intelligence chip demand, helping lift shares of chip heavyweight Nvidia to an intraday all-time high. Strong retail sales data also reinforced overall strength in the US economy.” (Yahoo! Finance)
+ The 10-year Treasury yield “advanced on Thursday after the latest economic data signaled strength in the economy.” (CNBC)
+ Oil “inched up on Thursday, bouncing back from two-week lows, after data showed falling crude and fuel inventories in the United States.” (Reuters)
+ Bitcoin “fell slightly on Thursday, but remained around three-month highs as speculation over a second Trump presidency, friendlier regulation and improved capital inflows boosted cryptocurrency markets over the past week.” (Investing)
+ The three most talked about stocks on WallStreetBets in the past 24 hours were: 1) Nvidia +0.8% 2) TSMC +9.7% 3) Netflix -2.0% // +5.0% after hours
The market moves you need to know about…
+ Sucks to suck, ASML. Just two days after the maker of chip-making equipment shared an outlook that was sadder than your s*x life, TSMC indicated business is booming. Shares of the world’s largest chip fab soared 9.7% after a beat and a raise.
+ Intuitive Surgical, which makes robots that aren’t completely f*cking useless (looking at you, Optimus) popped 6.1% after posting impressive quarterly results.
Blockbuster
Source: Giphy
Netflix (-2.0% // +5.0% after hours) just reminded all the combatants in the streaming wars that it’s Napoleon at Austerlitz (the real ones know).
The N in FAANG posted another big quarter. It beat easily on the top and bottom lines and remains the only streamer to, you know, actually earn money instead of just lighting it on fire.
“Nobody wants this.” - said no one ever
Oh, and it continued adding subscribers like an OF model that promised feet pics. Even during a “slow growth” period, NFLX managed to convince 5.1M human beings (… who presumably used to get their fix from Redbox (RIP)) to sign up. The Street was expecting 4.5M new subs.
According to the company that Paramount+ affectionately refers to as “daddy”, its new ad tier grew by 35%. And the ad-supported option accounted for nearly 50% of signups in countries where it was available. Honestly, I’d rather watch Tubi than ads on Netflix…
What’s next?
Bad news for those of you keeping score at home: this is the second to last time Netflix will share subscriber #s.
Why? Probably because it’s got nothing else to prove and is tired of dancing on the competition’s grave. It’s got a massive subscriber lead. And more importantly, it’s the only streamer that’s managed to make it to the promised land (read: profitability). From here on out, it will focus on the numbers that matter: straight cash, homie.
And there’s reason to believe it won’t have any problem impressing investors. The Street largely expects Netflix to raise prices soon, given the killer slate of content it has in the pipeline (think: NFL, WWE RAW).
Oh, and did I mention that NFLX brass believes the ad-supported tier will start contributing meaningful revenue in 2026?
+ “Prab, we're gonna need to go ahead and move you downstairs into storage B. We have some new people coming in, and we need all the space we can get. So if you could go ahead and pack up your stuff and move it down there, that would be terrific, OK?” - Sundar Pichai doing his best Bill Lumbergh impression
Probably just a coincidence that the guy who led the two divisions at Google which are currently under DOJ investigation is getting sent to the storage room (read: demoted)…
Prabhakar Raghavan, who runs (ran?) Google’s (-1.3%) search and ad businesses (think: the ones that matter), will report for duty as ‘Chief Technologist’. Look on the bright side, Prabhakar, at least they didn’t make you head of DEI.
He’ll be replaced by Nick Fox, who most recently was Head of Google+ vice president of product and design.
The timing of the move probably shouldn’t come as much of a shock given Google is facing separate antitrust suits related to its, you guessed it, ads and search biz.
+ “Is the soft landing confirmed?” - these kids probably
The jury is still out on the soft landing… unless, of course, you’re the biggest financial institution in the world (how long do you think Jamie Dimon put CFO Jeremy Barnum in timeout for this one?). But all signs on Thursday were pointing toward a Goldilocks situation…
First, we got retail sales data for September that came in above expectations. TYFYS. Then initial weekly jobless claims came in below expectations. That’s even more impressive considering the massive disruptions in the southeast thanks to Hurricanes Helene and Milton. *USA chant erupts*
+ Amazon (+0.3%) Prime be like “F*ck it, we'll do it live.” The streamer is dipping its toe in live news coverage… on election night. What could possibly go wrong?
Luckily for the American people, we’ll be in the capable hands of a trusted journo who has never, ever made false claims that have misled the public.
+ Are your money habits normal? See how you compare with the most common transactions on Cash App. People use the Cash App for things besides money laundering?
+ When Stock Prices Fall, Antidepressant Prescriptions Rise. Things that are zero percent surprising: this.
+ Standing desks may be bad for your health — here’s why. Standing upright provides a bigger target for would-be assassins.
🔥 Starbucks fans want their milk back. We used to be a country… a proper country.
🔥 How a rare type of mortgage is landing homebuyers a 3% rate. Who needs a mortgage when you can squat?
FYI, TWC might be compensated if you click on the links above. So, what are you waiting for? Start clicking.
⏪ Yesterday we heard from TSMC, Blackstone, Truist, Travelers, M&T, Huntington Banc, Key Bank, and Snap-on before the open. Netflix reported after hours.
Plus, September retail sales data dropped.
⏩ Today we’re keeping an eye on…
+ P&G, Amex, Fifth Third, Regions Financial, and Ally drop earnings this AM
Yesterday, I asked, “Are you nice to AI chatbots (think: 'please' and 'thank you')?”
‘Yes, just in case’ took the day with 36.8% of the vote.
Here’s what some of you guys had to say (and my thoughts in italics)…
Yes, just in case: “There's no need to be mean to AI when it's the only "person" that will talk to you. There's enough bad in the world.”
I don't use it, but if I did, I'd be nice: "I'll reserve my "f*ck you's" for the people who built them."
I don't use it, but if I did, I wouldn't go out of my way to be nice to it: "Am I the only one who hates the shimmering Meta AI orb that I never asked for? Or am I just a geriatric millennial who misses AIM?" Do you really want me to answer that?
F*ck no: "It's a bot, F*ck them bots"
F*ck no: "I will not treat robots like people, I don't care if they take me out in the future war because of it. Stand for something or die for nothing" This has got me ready to run down to my local recruiting office and join up (Space Force, for the record).
And here’s today’s question…
Something tells me I’m opening a can of worms with this question…
Where are you tuning in on election night?
What did you think about today's newsletter?
Does this look like the face of a guy you should take financial advice from?
No, it’s the face of an individual who is financially irresponsible/dumb enough to be talked into spending money on a family photo shoot that he could have just done with his iPhone. So, act accordingly...
This is not financial advice. Nothing in this newsletter is an investment recommendation. All content is created for entertainment, educational, or informational purposes only. Do your own research, or do yourself a favor and hire a professional.