Latest news with #BrianSozzi
Yahoo
2 days ago
- Business
- Yahoo
Netflix stock slips despite Q2 beat: How valuation factors in
Netflix (NFLX) stock is under pressure despite its second quarter earnings beat. Yahoo Finance Senior Reporter Allie Canal and Washington Crossing Advisors senior portfolio manager Chad Morganlander join Opening Bid with Executive Editor Brian Sozzi to take a closer look at what's driving the stock lower, despite the strong results, and what it could signal about upcoming Big Tech earnings amid valuation concerns. To watch more expert insights and analysis on the latest market action, check out more Opening Bid here. Ali stock selling off on this news. Um, but look, you go into the fundamentals of Netflix. They hit everything that I want to see as a former stock analyst. Margins up, revenue growth accelerated quarter over quarter, outlook raised, they got a new giant content slate coming out in the second half of the year. Not only live experiences, what with the double header on Christmas Day, you have Happy Gilmore 2 dropping. That's exciting. I don't know what else Netflix could have did yesterday. Yeah, and if you look through all the analyst notes, it's what I've been doing all morning. Everyone is still pretty bullish, but they did say that it's really hard as a company to surpass elevated expectations. Earlier, I was talking about the valuation, 40 times forward earnings. The stock is up over 40% since the start of the year. So perhaps they wanted that full year guidance to come in a little more ahead of where we're at, considering where the stock is trading right now and all those catalysts still to come, like you were just mentioning, Brian. But by and large, this is a company that has a solid balance sheet. It even has some AI touch points. They are going to be using generative AI in their shows. And as we know, any company that has those AI adjacent business propositions, that's going to be rewarded by investors. So there just seems to be a lot of growth drivers here. Advertising, in particular, has been one that's stuck out. It's one of the cheapest ad plans on the market. They're continuing to see solid growth there, and they are expected to double their revenue by the end of this year to around 3 billion, and a lot of analysts and sources who I speak with say that now subscriber numbers are no longer available, to focus on those ad numbers because that's an area where we're going to consistently see a lot of top-line growth. So that's, that's really strong. We have the content side of the equation that's really strong, a really solid back half of the year, and like you said, nothing really disappointed me in this report either. But when you're dealing with investors that just have a high bar, sometimes, even that struggles on the stock price side of things. Uh, so I'm going to sum up what Ali just said, Chad. Netflix is a fundamental beast. Now, having said that, this reaction that we're seeing in the market to these very strong earnings and outlook, any read, any read through there to large cap tech earnings that are going to come over the next two weeks. Microsoft, bioindications are probably going to come out here, good quarter, beat, relatively upbeat earnings call. Is the risk here, we got to sell off there too? Well, I mean, all these tech names, uh, on the MAG 7 side have been moving higher in anticipation of a really white hot earnings, uh, top line revenue growth, and whatnot. Uh, so, yes, you can get a breather where there is some consolidation within the market overall. But again, you know, there's a lot of tailwind here when it comes to the AI related companies, revenue growth. This is real revenue growth, real earnings coming through. Uh, so, over the long run, if that you have that, then you should see higher highs within these names. Related Videos US Consumer Sentiment Rises to a Five-Month High Chevron's $53 billion Hess deal finally approved: What to know Talen Energy, 3M outlook, SLB earnings: Trending Tickers Waller calls for rate cut, GENIUS Act, Netflix earnings: 3 Things Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
'IPO window is open' & it's good news for Big Bank investors
With bank earnings underway, Citizens JMP Securities CEO Mark Lehmann and Argus Research director of financial services research Stephen Biggar join Opening Bid with Brian Sozzi to discuss the dealmaking environment for the second half of 2025. To watch more expert insights and analysis on the latest market action, check out more Opening Bid here. But JP Diamond yesterday called out a recovery in investment banking, certainly saw a bit of that or a lot of that in Goldman Sachs out today. What's your outlook for the investment banking business for the back half of this year? Uh thanks for having me on. It's definitely improving. Uh the IPO window is open. Uh the question is not whether it's open, it's how many people want to go through the window. And I think you're starting to see that acceleration like we saw in May and June, and you'll see in the back half of the year. So I would consider this uh a good back half backdrop, and the biggest way to predict that, of course, is what happened in the first half of the year, and most of those deals that came out are working spectacularly well. So my hunch is where you have more of a demand than supply, that gets to equilibrium, that means there'll be more IPOs in the back half and going into 26. Mark, what are these private companies waiting for? I mean look at you know, markets are at records, uh the regulatory backdrop appears to be easing. What do they need to see to come public? Uh it's a great question. I think certainly. I'm sorry. Yes, I think there's a couple things. One is they want to the path to profitability, they want visibility on their earnings over the next four to six quarters. Secondly, I think they really want to make sure that the investors that they have are supportive of the deal. And again, there was a bunch of unicorns that priced offerings in 2021 on the private side that are still not at those valuations. So that kind of denial phase, I think is getting closer to behind us and the acceptance phase of what the market has is in front of us. Go ahead. Steven, I'm looking for red flags. I don't want to sit up here and hype bank stocks. No quarter is perfect out of any company. As you sifted through these, really, uh Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, Wells Fargo was wasn't that great, but what stood out to you in terms of things that investors should be worried about? Well, you know, clearly, the back half is uh there's still some concerns about tariff related uh you know, turmoil. We get these kind of on again, off again uh uh tariffs and and of course the company managements have have talked about that. I think the um you know, there's those the certainly bank stocks have had a a big head of steam here uh coming into the quarter. And uh so valuations are, you know, a bit on the upper side, although, you know, universally we raised target prices yesterday on companies that came out because earnings are strong and they mostly guided a bit higher. Uh so it's hard to find a lot of fault uh in these, other than, you know, the valuations are are a bit stretched unless uh we do get that investment banking rebound in in the second half. And I you know, I think we're we're a bit counting on that uh as well as some uh regulatory um softness as as well, uh softening some of the capital requirements uh in the back half. I think by the end of this year we might have some of that. Uh so that that could be another catalyst for bank shares on the upside, but um at this point, you are we are factoring in uh you know, quite a bit of improvement uh across the board. Related Videos Powell isn't the only Fed hawk: Williams keen to hold rates Earnings highlights & Fed rate cut odds: What to know Trump vs. Powell, earnings, retail sales data: 3 Things Get Used to a Higher Degree of Volatility, Says BofA's DeMare Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Nvidia may resume China sales, but this strategist is hesitant
Nvidia (NVDA) is leading the broader market higher, pushing the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) to fresh record highs, after the chipmaker signaled that it expects the US government to allow it to sell its H20 chip in China, a positive sign of progress in the ongoing trade war. New York Life Investments economist and portfolio strategist Lauren Goodwin joins Opening Bid host Brian Sozzi to outline her read of Nvidia's current price action and US trade dynamics. To watch more expert insights and analysis on the latest market action, check out more Opening Bid here. We're also locked in on all things Nvidia office, uh, H200 news. Those chips look like they'll be headed back to China. And I want to call up, uh, the earnings estimates for Nvidia. You can find these on the Yahoo Finance platform, but you can see how they've really fallen down, uh, versus 90 days ago. And large part, large part because of unknown related to the, uh, not only just AI demand going forward, but what will happen with this China business. We now know, Lauren, and it's likely now estimates will have to climb for Nvidia, but do they also have to climb for other companies that play, other tech companies that play in China? And then how are you thinking about the tech trade moving forward? I always hate to answer a question like this as a two-handed economist, but I think that we have to. This foundational layer of artificial intelligence is so important. There's a reason why we've seen these companies be gainers throughout the last couple of years as the AI trade has unfolded. They are so essential to moving this technology and these business processes forward that we're all looking forward to. And the news that we're seeing with respect to China is certainly positive news. Whereas an economist and a market strategist, I have some hesitation is that there's not very much that investors, or even these companies, can do to influence the major geopolitical shifts that we're seeing globally. And when we, when it comes to sales in China, or really US-China competition around this technology supply chain, I anticipate ebbs and flows in that dynamic. And so, as policymakers try to decide, you know, will the US be more open to collaboration with China and Chinese companies on these technology supply chains, or will they not, companies like Nvidia, and like many of the other magnificent seven and technology enablers, are going to be in the middle of that fray. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
What's behind bitcoin's run toward $125K and what's next
Crypto-related stocks like Coinbase (COIN) are showing signs of strength in a broad crypto rally as bitcoin (BTC-USD) nears $125,000. chief strategist Michele Schneider and Lafayette College chief investment officer Krishna Memani join Opening Bid host Brian Sozzi to weigh in on where crypto could go next and whether institutions are ready to get on board. To watch more expert insights and analysis on the latest market action, check out more Opening Bid here. Michelle, I want to start with you because uh really Bitcoin has taken off uh the past week, two weeks, even the past month. Any signs of fatigue that you're seeing in Bitcoin, Ethereum, really, I guess, at all across the landscape of uh crypto assets? Well, I was always looking for a 125 target, so we're we're darn close to that, but that doesn't necessarily mean. Time to raise your target, Michelle. Let's get the new target on Yahoo Finance or 200,000 maybe? Well, I I I tend to be a little bit more conservative in my in my calls for things, although I have been also known to make bold ones. But in terms of Bitcoin right now, 125 is really where I'm looking at. But what I'm really interested right now, believe it or not, besides Ethereum, which has exploded over 3,000 and that's fantastic. I really like Chainlink. It has made a huge move over the last week. It actually was starting to make a move even before Ethereum did. And if you look at a chart, since that's what I do, right now it's sitting right at a 200 day moving average. So I'm talking about l i n k u s d. And if it gets through there, it hasn't been since January. We have a really interesting setup where this thing can go much higher. From a from a from a standpoint of what Chainlink does, it's a bridge between what's on the blockchain and what isn't on the blockchain. It actually brings that access to the blockchain. That is a future growth area anyway in the whole space from a more fundamental standpoint. So yeah, I think uh I don't see fatigue in some of the old coins. Like I said, Bitcoin will see around 125. I wouldn't necessarily get out, but I would certainly be looking at holding at 120 now, somewhere around that 118, 120. Yeah, just seeing Michelle what uh Brian Armstrong, uh Coinbase CEO's working on. I mean, really laying the foundation for a very strong, fundamentally oriented business. Let me just follow up with some of the things you said. What is the better trade? Do you trade some of these altcoins and look, they are very, very risky or do you go into something more, I guess a proven commodity at this point, no pun intended in the Coinbase? Well, that's interesting you use the word commodity because as an old school commodities trader, what's so great about all the old coins and Bitcoin and and of course being the kingpin, Ethereum and Chainlink, Solana, all of it is that they're so highly technical. So they're risky in that they're not investments necessarily, although that could be changing with this mass adoption. All this legislation is just another feather in the cap of mass adoption, especially with stablecoin and now Circle that IPO proved that people are hungry for some kind of an access to like a credit card, so to speak, for Bitcoin without actually owning it. The point is is that if you really can understand how to look at price action, especially on these volume surges and take advantage and look at it more as an active investment, sort of almost a fun way to make extra money, then I think it's a great space and that's one of the reasons why I love about it. Krishna, we hear uh we've heard consistently uh of late institutions are getting into crypto. Institutions are getting into crypto. Well, you are an institution. What are your thoughts, have your thoughts changed on crypto compared to six months ago? So I'll start by saying that I've been wrong on crypto for 15 years. So don't whatever I say please. There's always a chance to be right, Krishna. And today could be that day. Yeah, I know that but I think the point that was made earlier was a really good one. That is, if you're going to be playing in crypto, you have to play it the way the commodities folks play it, which is this is really not an investment still. Despite all the talk that we see here about changing landscape and things like that, this is still not an investment. It is a speculative vehicle. You can make a lot of money as people already have. And and and but it's not an investment. So we are not involved and it's quite unlikely that we'll remain involved. The only place where I see crypto actually making progress is on the stable coin front. But if you look at valuations of something like Circle relative to the potential amount of money that you could make out of stable coins, I'm I'm not so sure it's it's the right metric.
Yahoo
11-07-2025
- Business
- Yahoo
Netflix stock pre-earnings: Is the upside already priced in?
Netflix (NFLX) stock is underperforming the S&P 500 (^GSPC) ahead of the streaming giant's earnings report, yet analysts are largely bullish on the stock. Yahoo Finance Executive Editor Brian Sozzi, Yahoo Finance Senior Reporter Ines Ferré, Blue Chip Daily Trend Report chief technical strategist Larry Tentarelli, and Interactive Brokers chief strategist Steve Sosnick take a closer look at Netflix's recent price action. To watch more expert insights and analysis on the latest market action, check out more Opening Bid here. We are cranking it up a few extra gears with Stock of the Week. I'm locked in on Netflix ahead of its July 17th earnings report. What's caught my attention is that the stock has been underperforming the broader market rally this month. Shares are down five and a half percent in July while the S&P 500 is up 1.7%. Judging by the Wall Street commentary out there, analysts aren't making too much of this trend divergence though. Needham analyst, Laura Martin, is out today raising her target price on Netflix to $1500 from $1126. She says she remains impressed with Netflix's global scale and stable content spending. Jumping into the Yahoo Finance platform, you can see Martin isn't alone in her bullishness. The street has hiked its 2025 EPS estimate on Netflix by 79 cents compared to just 90 days ago. They have also lifted their 2026 EPS estimate by 60 cents during that same time span. Still with me, my round table Larry Tenterelli, Steve Sosnick, and Inez Ferre. Uh, Inez, I want to go to you here on Netflix out of the jump. Netflix, I can understand why these estimates have climbed. Really for the better part of two years, Netflix has come out here and they have completely destroyed, crushed, hammered, however you want to put it, earnings estimates, and they have come out and raised guidance. I'm trying to think, why won't that happen again, given how popular the platform is? Well, certainly you have a lot of Wall Street that believes that they can continue to outperform as a company. I mean, they've had their password share crackdown. They've had their ad tiers that has done very well. They are pushing into live sports. So there's a lot of reasons why the street is bullish on the stock that and you mentioned the sort of underperformance this week, but look, if you take a look at a year to date chart and you take a look at where it's come from the April lows, you have Seaport Global that has been that noted this when they actually lowered their rating to neutral because they said, "It's a lot that's baked into the stock right now. And on evaluation standpoint, they're saying, let's just wait to for for management to execute on everything that is now priced into the share into these shares because they've gone up since those April lows, almost 50%." Larry, let me get over to you here. The stock has underperformed in July. Any concern or red flag on your part there ahead of earnings? No, that's part of the rotation that I discussed that started on July 1st. The chart that you just put up showed a sharp pullback in Netflix on July 1st. And we saw that with quite a few of the high momentum stocks and money moved into small caps, healthcare, home builders. And I I think it's a normal sector rotation. Fund managers have made a lot of money this year in tech and some of these growth stocks. And I think it's a normal rotation to book some gains and then reallocate into underperformers. Netflix is a very strong long-term uptrend. It could always consolidate after nearly a 50% move off the lows, but the long-term trend is very strong. Hey Larry, that's what I'm trying to get at. Is it, is the stock become so priced for perfection? Even if Netflix comes out again, beats on earnings, maybe the street's just continue to inclined to sell this name. That's possible. There there's a lot of gains in a stock like Netflix that could be booked. So as a trend follower, I'm going to stay with the weekly trend, which is strong, but a lot of these stocks have had big run-ups. So if there was some profit taking into earnings or after earnings, as long as they stay over the 50-day moving average, it really wouldn't concern me. Steve, last word to you. Is Netflix perhaps one of the most perfect stocks in the market? Uh, they had Squid Games, the finale drop at the end of the quarter. This is going to be the first full quarter where they raise prices on folks. So their profit should look pretty good. And oh yeah, there's no tariff exposure. Oh, it's certainly been a beneficiary for all the reasons you've suggested and both and Inez and Larry both made great points about like the the year-to-date performance and also sort of the um, end of the second quarter markup fading uh, at the as of the 1st of July. Um, but I do think, you know, it's proven to be a very price inelastic stock. I know that I've tried to cancel it and my wife and kids have revolted every time I try. Can't cancel Netflix, Steve. What are you doing, man? I don't watch it. My family does. I watch other stuff. I watch more sports than Netflix, but what ends up happening is they they they rebelled and said, "Absolutely not." And so I think they're, you know, this company, every time they've tried to do something that people thought might scare off customers, it hasn't. The question now is, is it priced, is it priced to perfection, or is it priced beyond perfection? Uh, the trends are certainly very strong. Um, it's been a great company and the, you know, but but as with many things market-related, have we gotten we'll find out when the earnings come out if we've gotten a bit ahead of our skis, um, in terms of expecting another round of perfection. But boy, the market since the last earnings, uh, the market's really repriced this stock in a very positive way. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
