“He might be the new CEO, but they’ll never call him dad.” – Jeff
Hey there carnivores,
Markets were down on Thursday, as tech stocks struggled.
Today we’re discussing Netflix’s new head honcho
Jeff & Jason
Netflix got the Carole Baskin treatment yesterday…
The streamer that Peacock wants to be when it grows up announced a shakeup at the top and Q2 earnings on Thursday… and investors were none-too-pleased.
The streaming company beat on Q2 estimates for revenue ($6.15B vs. $6.08B) and global net subscriber additions (10.09M compared to 8.26M).
And yet, $NFLX dropped 9% after hours. Da fuq?
Why the long faces?
Well, either no one likes the Reed Hasting’s heir apparent, or the ‘flix turned the suck up for its Q3 guidance. Spoiler: it’s the Q3 thing.
Third-quarter revenue guidance issued by Netflix is just $6.33B compared to analysts’ estimates of $6.40B.
But the bigger impact is the projected 2.5M net subscriber additions, which is less than half of Wall Street’s 5.27 forecast. Somewhere, in the big bankruptcy court in the sky, Blockbuster’s board is getting the last laugh.
Who’s the new guy?
Ted Sarandos, who most recently held the title of chief content officer, was bumped up to co-CEO in a move that appears to be part of the succession plan in place for when 59-year-old CEO Reed Hastings moves on to greener pastures. Tell that to Kendall Roy.
Ted’s been enjoying the excellent adventure at Netflix since 2000, having played a large role in the company’s original programming strategy and overall growth. So it’s his fault for giving Pete Davidson a special.
The bottom line…
Netflix, like many other streaming companies (sans Quibi) saw a big boost in subscribers thanks to ‘rona boi lockdowns. While Netflix’s estimate for new subs (no doms here) doesn’t look so hot going forward, an additional stay at home order caused by a second wave of COVID-19 could be just what the doctor ordered. *Reed Hastings keeps refreshing coronavirus.jhu.edu*
☑️ Still hurting.
US jobless claims set a new record, marking the 17th straight week in which initial jobless claims clocked in at over 1M. We did it! USA! USA! USA! What’s more? We beat expectations too, with 1.3M new filings, compared to the analyst predicted 1.25M.
Since March, total claims have climbed above the 50M mark, but this week was the 15th straight week of new claims dropping… so we’ve got that going for us. With a surge in cases around the country, that’s a streak we could see broken sooner than later.
☑️ Get in, we’re going shopping.
Retail sales in June saw a bigger bump than you’d find in a bathroom stall at 1Oak on a Saturday night. US retail sales climbed 7.5% in June, a follow up to the 18.2% jump in May.
Economists had predicted that the US would only see a 5% sales climb in June. Suck it, economists. You don’t know how long I’ve been waiting to say that.
☑️ Teaming up.
An unlikely partnership is brewing in the northeast, as JetBlue and American Airlines are getting (back) together forging a pact to sell seats on each other’s planes. Passengers on either airline will be able to collect frequent flier miles from the other as well. There’s the answer to the real question everyone had.
The move is part of an effort to serve more travelers leaving from Boston and NY, as airlines face a steep drop off in travel due to that whole global pandemic thing. Remember that?
American has gotten into bed with other airlines in the past, having joined forces with Alaska Air earlier in the year. It had even previously collabed with JetBlue on a similar program, which ended back in 2014. Coronavirus really is bringing us closer together.
☑️ Calm to the Max.
Calm is taking its talents to the small screen, agreeing to a season of ten, half-hour episodes on HBO Max. The series will be based on Calm’s popular feature, Sleep Stories. Because who doesn’t want to imagine Matthew McConnaughey in their bedroom just before they fall asleep? It will feature visuals from the producers of NatGeo’s One Strange Rock series. Say no more, I’m sold.
The list of celebrities that Calm is bringing into the fold is pretty impressive… Mahershala Ali, Idris Elba, Oscar Isaac, Nicole Kidman, Zoë Kravitz, Lucy Liu, Cillian Murphy and Keanu Reeves (Keanu Reeves as Johnny Utah? Or John Wick?) are among the big names tied to the project. Are people just not falling asleep to reruns of The Office anymore?