Maybe Netflix (NFLX) - Get Report will also be a trillion dollar company (current market cap: $87 billion and counting ...) right alongside Apple (AAPL) - Get Report , Amazon (AMZN) - Get Report and Alphabet (GOOGL) - Get Report .
How else could one not hypothesize such a thing after looking at the streaming giant's results and comments? U.S. net subscriber additions blew away Wall Street estimates as the company is clearly winning on several fronts, most importantly attracting -- and retaining -- subs with original content. Developing great programming that it owns is the secret sauce of Netflix that Wall Street expects CEO Reed Hastings will continue to cook up. That said, there is more to take away from Netflix's third quarter than simply stuff on the surface. For example, Netflix said it's planning to invest $7 billion to $8 billion in content in 2018. Suddenly, Disney (DIS) - Get Report pulling itself off Netflix in 2019 isn't that big a deal (execs said as much on the earnings call, but did note they remain willing to hash out a deal with Disney). Netflix continues to widen its moat. Sorry Disney bulls and Hulu investors.
Another key point is that the market has reacted favorably to Netflix earnings that while solid, weren't blowout. Profit margins in the U.S. were slightly weak and margin guidance was soft. But to see the market send up Netflix shares in response (up most of session on Tuesday) is positive on the possible market reaction to earnings from hot tech companies such as Facebook (FB) - Get Report , Amazon and Alphabet. At the very least, it's a sign that the record-setting stock market may have some legs left despite people calling for a crash, such as Dr. Doom Marc Faber. And finally, if one owns AT&T (T) - Get Report and other traditional TV plays, how is that an OK investment to hang onto after a quarter like Netflix just reported? That is especially the case after AT&T's weak results last week on cable subs. Cord-cutting in America in picking up steam -- respect it and invest accordingly. Hat tip to Netflix, you blew everyone's minds again.
I had a nice chat with BlackBerry (BB) - Get Report CEO John Chen on the New York Stock Exchange floor on Monday. Came away thinking BlackBerry is positioning itself to be acquired by a car company at some point in the future. Nevertheless, Chen's comments on NAFTA were newsworthy.
"If we do it wrong, it could mean higher prices [for IP] for consumers," Chen told me when asked about the contentious talks between the U.S., Canada and Mexico. Chen explained the talks have been "quite noisy" so far, and the prospect of higher prices are "troublesome." BlackBerry has a particular stake in the game seeing as it's headquartered in Waterloo, Canada. Higher prices on its products could stunt demand for BlackBerry and indirectly impact the company's workforce in Canada, and elsewhere.
Get ready for higher lumber prices and a more expensive down payment on a home!
Here's the full interview with Chen.
Will IBM Share Anything Good?
Need an in-depth look at IBM (IBM) - Get Report ahead of its earnings on Tuesday evening? TheStreet's Eric Jhonsa has you covered here. Of all the things Jhonsa discussed, I would be most interested in IBM's cloud growth. As Jhonsa pointed out, IBM's cloud as a service revenue has slowed noticeably over the last six months. Share loss to Amazon and Microsoft (MSFT) - Get Report in the cloud? Perhaps. You might consider putting on those two trades long, and short on IBM, into the report. But hey, I no longer pick stocks for a living so what do I know.
Here Comes the Crash
Are you having such a rough week already that record-setting stock markets can't even help brighten things up? Allow me to ruin it even further with several new bearish calls on the stock market.
First up is Vanguard Chairman Bill McNabb, who told the BBC there will be a "decent-sized correction at some point." McNabb added in the interview that stock markets were not "in bubble territory," but he believed valuations were "very high."
Sort of sounds like what Vanguard's legendary founder Jack Bogle recently told TheStreet's Anders Keitz (see video below).
Meanwhile, Marc "Dr. Doom" Faber told our friend Daniela Cambone that the market is about to collapse. Nothing new per se from perma bear Faber, but it's worth writing about. Cheers to another talking head trying to predict a market top in order to sell some newsletters!
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