- 3 Big Scoops
- Posts
- 🗞 Netflix Smashes Q4 Estimates
🗞 Netflix Smashes Q4 Estimates
PLUS: Donald Trump takes aim at China
Aditya Raghunath
January 22, 2025
In partnership with
Bulls, Bitcoin, & Beyond
Market Moves Yesterday
S&P 500 @ 6,049.24 ( ⬆️ 0.88%)
Nasdaq Composite @ 19,756.78 ( ⬆️ 0.64%)
Bitcoin @ $105,803.26 ( ⬆️ 3.88%)
Hey Scoopers,
Happy Wednesday! Welcome to your daily dose of market insights, served with a side of wit!
👉 Netflix stuns Wall Street
👉 Mag 7 key to Q4 earnings growth
👉 Trump targets China (again!)
So, let’s go 🚀
Market Wrap
Hey, Scoopers!
Hold onto your portfolios, folks - the S&P 500 just crashed through 6000, driven by a broad market rally.
Tuesday's Hot Takes
Think of Tuesday’s market like a high school cafeteria - the AI crowd and semiconductor gang were sitting at the cool kids' table.
Cruise lines and airlines soared (pun intended), while Apple got sent to detention after some rough news from China. Energy stocks, meanwhile, were eating lunch alone.
The Trump Card
With softer-than-expected news of China tariffs, markets received a pleasant surprise, though our North American neighbors might need to keep their guard up. A whisper of private-sector AI investments also had tech investors doing victory laps.
Peek Into Next Week
The economic calendar looks emptier than a gym in December, but don't get too comfortable - big tech earnings are about to storm the stage, and corporate buybacks are warming up in the wings.
Quick Hits
Starbucks is brewing up some organizational changes
Charles Schwab flexed its muscles with strong trading numbers
Moderna snagged a cool $590M for bird flu vaccine development
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Trending Stocks 🔥
United Airlines - Shares of the airline operator are up over 3% in pre-market after it posted revenue of $14.70 billion with earnings of $3.26 per share, above estimates of $14.47 billion and $3 per share, respectively.
Chinese stocks - Several Chinese stocks, including JD.com and Pinduoduo, are expected to move lower following Donald Trump’s latest tariff threat.
Interactive Brokers - The stock is up 3% after the broking platform grew earnings by 34% and expanded the customer base by 30% in Q4.
Netflix Steals the Streaming Show! 🎬
Hold onto your remotes, folks! Netflix just dropped a blockbuster earnings report that has Wall Street binge-watching its stock (up 14%!) faster than the latest series obsession.
The Big Numbers
Netflix crushed it in Q4, hitting the 300 million subscriber milestone (that's like everyone in the US deciding to Netflix and chill!) with a stunning 19 million new additions.
But wait, there's more - their global audience, including those "borrowing" accounts, now tops 700 million. Talk about a crowd!
Show Me the Money
Revenue jumped 16% to $10.25 billion (beating Wall Street's guess)
Earnings per share: $4.27 (also better than expected)
2025 revenue forecast: now targeting $43.5-44.5 billion (somebody's feeling optimistic!)
Plot Twist: Price Hike Alert! 📈
Standard no-ads plan: $15.49 → $17.99
Ad-supported plan: $6.99 → $7.99
Premium plan: $22.99 → $24.99
Netflix is betting big on 2025 with some heavy hitters:
"Stranger Things" and "Wednesday" return
A new "Knives Out" with Daniel Craig
"Happy Gilmore 2" (yes, really!)
Guillermo del Toro's take on Frankenstein
Stay tuned, streaming fans - this show's far from over! 🍿
Big Tech Key to Earnings Growth
Remember when everyone thought the Magnificent 7 was carrying the entire market on their shoulders? Well, plot twist - they've got company!
The Big Picture
While our tech titans are still flexing (hello, 21.7% earnings growth in Q4!), the rest of the S&P 500 is showing some serious muscle too.
The other 493 companies are projected to post their best performance since mid-2022, with a respectable earnings growth of 9.7%. Not too shabby!
Q4's All-Star Lineup
Three of our Magnificent 7 members should make the top 10 earnings growth contributors:
NVIDIA (still crushing it)
Amazon (prime delivery of profits)
Alphabet (searching for new highs)
But Wait, There's More! Some unexpected players are crashing the party:
Banking Brigade: Bank of America, Citigroup, JPMorgan Chase, and Truist
Pharma Forces: Eli Lilly and Merck
Chip Champion: Micron Technology
Looking Ahead to 2025
The crystal ball shows double-digit earnings growth for the S&P 500 index in every quarter 👇
Q1: 11.6%
Q2: 11.6%
Q3: 15.2%
Q4: 16.7%
Looks like the S&P 500's supporting cast is ready for their spotlight moment! 🌟
Trump's 2025 Tariff Trilogy 🎭
Well, folks, 2025 might be giving us some serious déjà vu! Trump's latest trade policy announcement reads like a three-act play, and we've got front-row seats.
Act I: The China Chapter
Star of the show: A proposed 10% tariff
Opening night: February 1st
Plot twist: It's all about fentanyl this time
Market reaction: Yuan did a little dance before settling at 7.2796
Act II: The North American Subplot
Supporting cast: Mexico and Canada
Proposed tariff: A hefty 25%
The reason: Border control concerns
Timeline: Also eyeing February
Act III: The Numbers Game
China trade surplus with U.S.: $361 million in 2024
Potential cost according to Peterson Institute:
U.S. GDP hit: $55 billion
China GDP hit: $128 billion
Behind the Scenes
While Trump's team is writing this new trade policy script, China's Vice Premier Ding Xuexiang sings a different tune in Davos, claiming there are "no winners" in a trade war.
(Spoiler alert: Chinese state media seems more interested in Trump's EU tariff threats!)
Stay tuned, market watchers - this drama's just getting started! 🎬
Headlines You Can't Miss!
Europe to respond “proportionately” to Trump tariffs
AI is the hot topic at Davos this year
Trump announces AI infrastructure investments
Indonesia fines Google $12.4 million for unfair trade practices
Crypto.com launches institutional-grade services in the U.S.
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DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.