After Netflix, Here's What Investors Should Expect From FAANG Earnings

Katherine Ross: I've got Stephen Guilfoyle, aka Sarge with Real Money here with me. Let's talk about Fang, Sarge because we had Netflix's earnings, they beat expectations for the EPS, but the subscription numbers kind of fell short and yet the stock soar. So what should we expect from the rest of Fang?

Stephen Guilfoyle: Well, I don't think the rest of the Fang is in the same boat as Netflix in the least. I mean, I'm not in the rest of Fang right now. I do trade in and out of Amazon. I think it might be going the right way. Maybe I should get on board. I don't necessarily trade Alphabet because they haven't gotten along so well with the department of defense in the past. And if that comes down to a fight, I am with the department of defense, and Facebook, let's face it, although they cause trouble and no one likes them, they have a great business, they have the best advertising business. I know them. So I wouldn't be surprised if all three of those have a pretty good earning season. But if you want to go back to Netflix, I'm not going to bash them. And I'm not going to say they can't succeed, but I don't know how.

Stephen Guilfoyle: I mean, maybe I'm just not, I can't wrap my head around how they could possibly hit guidance on new subs when they couldn't hit these numbers last quarter when they weren't fighting Apple and Disney and with coming competition from AT and T and Comcast. I don't know how they can possibly think they're going to hit those subscription numbers unless they're so confident that they can do it internationally, which maybe they are. And maybe I'm wrong, but you know what? I shorted this last night after hours. I've shorted this. This is the fourth time I've been short these shares this year. And, is there what I can knock right now... It's not like Tesla when I used to trade short and lose money. I'm actually throwing it all in Netflix. And if I covered that short today, I'll be forward though.

Katherine Ross: All right, Sarge, good luck.